Yes if you want the new name to show within the instance. SQL Server actually uses the GUID of the group when it does it's lookups to AD so you don't actually need to remove and recreate it.
Denny
MVP
MCSA (2003) / MCDBA (SQL 2000)
MCTS (SQL 2005 / SQL 2008 Implementation and Maintenance / Microsoft Windows SharePoint Services 3.0: Configuration / Microsoft Office SharePoint Server 2007: Configuration)
MCITP Database Admin (SQL 2005/2008) / Database Dev (SQL 2005)
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