In Finder 7.0, renaming icons is slightly different from System 6. To
rename an icon you must click directly on the name of the icon and wait for
the cursor to change to an I-beam. A box will appear around the name of the
icon and you can then edit the name. The speed at which the box appears,
making the file or folder name editable, is dependent on the double-click
speed in the Mouse control panel.
But if you don't want to wait for the cursor to change to an I-beam, you
can click once on the file or folder name and drag the cursor off the name.
This will make the name immediately editable. Alternately, click anywhere
on the icon and press Return to make the name immediately editable.