MSCRM: Installing - the instance name must be the same as the computer name

When installing Microsoft Dynamics CRM MSCRM 4.0 you get the error "the instance name must be the same as the computer name" from the installation wizard Microsoft SQL Server System Requirements check.

This may be because 1) the server name has been changed since SQL Server was installed, or 2) you are running a 64-bit or Windows Server 2008 environment.

Note that in the Microsoft Dynamics CRM 4.0 "Help", it may state that only SQL Server 2005 is supported. This is not the case; for more information please see the Microsoft Knowledgebase article "Support for running Microsoft Dynamics CRM 4.0 together with Microsoft SQL Server 2008".

To check if the server name has been changed since SQL Server was installed, open Microsoft SQL Server Management Studio and run the following query:
SELECT * FROM sys.servers

If the current server name is not listed, then use the following procedures to correct the issue:
Execute sp_dropserver <OldServerName>
Execute sp_addserver <NewServerName>, local

If you are running a 64-bit or Windows Server 2008 environment, then check that Named Pipes have been enabled in the SQL Server Network Configuration (Start menu All Programs Microsoft SQL Server Configuration Tools SQL Server Configuration Manager expand SQL Server Network Configuration highlight Protocols for <SQLInstanceName> Enable Named Pipes.