Software Deployment

You can do it using MoveFile table also,

not sure of what you are trying to accomplish need more detail.  To rename a folder in windows the command is:

"rename c:\afolder\foldertorename renamedfolder"

You can also write vbscript like this and use it in custom action

Option Explicit

Dim objShell
Dim objFSO
Dim AllUsersProfile

Set objShell = CreateObject("WScript.Shell")
Set objFSO = CreateObject("Scripting.FileSystemObject")

AllUsersProfile = objShell.ExpandEnvironmentStrings("%AllUsersProfile%")

If objFSO.FolderExists(AllUsersProfile & "\My OldFolder") Then
    objFSO.MoveFolder AllUsersProfile & "\My OldFolder" , AllUsersProfile & "\My NewFolder"
End If

Set objFSO = Nothing
Set objShell = Nothing

Run a custom action to rename the folder.