When running 10.7.5 and using Google Chrome I cannot change the name of new folders created using bookmark manager
I would highly advice against re-installing chrome. 

What I've found is that this feature is hidden and not very intuitive, but it's there. All you have to do, believe it or not, is:


Open Bookmark manager (Ctrl+Shift+O) 
Click on the name of the folder(right above your google icon)
Rename to your liking


For the official instructions.

That's it. You can't hit F2 when a folder is selected, which is a mystery to me. Renaming can also be done in a more painful manner through the bookmarks bar:


Open Bookmarks Bar (Crtl+Shift+B)
Right click on the folder
Choose rename


These are the only two ways about it to my knowledge.