Yeah sysprepping is definitely also an option. I only ever did a couple of syspreps years ago, so this route seemed more natural for me.

About the SQL server. In my situation I used the build-in database, and nothing had to be done and I never had to the other times around either. Not sure if I ever renamed a VM with fullblown SQL server, but I don’t think it’s supposed to be any different that using the build-in actually.
If I used a separate SQL database (on another server, and shared between copy server and original server), it would be a different matter. I did that when I “cloned” our production server to make a staging server.

My first attempt was to use same database server, to save the extra SQL license.
The steps for this was:
- Clone machine
- Rename, new sid
- Copy databases
- Offline production databases
- Start up stage server
- Detach production databases using STSADM
- Add stage databases

This did not work. I should have done this:
Clone machine
Rename, new sid
Copy databases
Offline production databases
Start up stage server
Run SharePoint Wizard and create new farm
Create new SSP
Create new web applications with content databases named something like DeleteMe and then go remove them and add the old ones.
Something like that at least.

Or even better
Install a new machine from scratch.
Install SharePoint
Add all solutions
Copy databases
Offline production databases
Start up stage server
Run SharePoint Wizard and create new farm
Create new SSP
Create new web applications with content databases named something like DeleteMe and then go remove them and add the old ones.

I also had major problems with the SharePoint WSS templates for IT manager, Financial Controller etc. that was used, and I did not want to reinstall those. They each use their own database, and it’s hardcoded. I didn’t feel like redoing that and installing them again.
Oh and out backup had not used VSS so all the DLL files were not copied since they were in use when the backup started. How sad. But it made me figure out how to get files out of GAC which inspired a post or 2

I have one question. What about SQL Server? Don’t you have to drop the database scheme and re-add it once the server has been renamed? That was something I had to do on my sysprepped machine once the machine name was changed. Otherwise SQL would throw fits.