You are trying to rename a 2011 data set with a 1980's utility. 
You can do it with IDCAMS, this will take care of the data set on disk
and the catalog info.

//IDCAMS EXEC PGM=IDCAMS                      
//SYSPRINT DD SYSOUT=*                        
//SYSIN    DD *                               
 ALTER BETTY.JCL.PDS NEWNAME(BETTY.JCL1.PDS)  
/*                                            

Watch the space in front of "ALTER".

Will this solve your problem?

Kees.

"Jake anderson" <justmainfra...@gmail.com> wrote in message
news:<CAHTvvRXCvrwv_CSeHnw6nN=dhfwaqrw_mkpsvygse1vvu1t...@mail.gmail.com
>...
> " Is the disk
> SMS managed?"
> 
> Yes - So is is it possible to take the existing name for renaming
Purpose
> using IEHPROGM ? But when I try renaming with a non-existent name then
I am
> able to do it whereas existing name produces this error message
"Password
> protected".
> If I do a recatalog of existing name , then will it erase the Old
content
> of existing Dataset(NEWNAME as in JCL) ?
> 
> Jakes
> On Tue, Nov 15, 2011 at 2:04 PM, Vernooij, CP - SPLXM
<kees.verno...@klm.com
> > wrote:
> 
> > "Jake anderson" <justmainfra...@gmail.com> wrote in message
> >
news:<cahtvvrw503n-daal98sqzcritzj4bhyxu-hsgpfdmxgqhsj...@mail.gmail.com
> > >...
> >  > Hi,
> > >
> > > When I try to rename a dataset using a Utility IEHPROGM and I get
a
> > error
> > > message like :
> > >
> > > Error :
> > >
> > > SYSTEM SUPPORT UTILITIES ----
> > > IEHPROGM
> > >
> > >
> > >    RENAME DSNAME=BETTY.JCL.PDS,
> > > X00027015
> > >                NEWNAME=BETTY.JCL1.PDS,VOL=3390=KMCG03
> > > 00028017
> > >  IEH207I  STATUS OF USERS REQUEST TO RENAME DATA SET
> > > BETTY.JCL.PDS
> > >           VOLUME I.D.     ACTION TAKEN     REASON FOR TAKING THIS
> > > ACTION
> > >             KMCG03          NONE           CORRECT PASSWORD NOT
> > > AVAILABLE
> > > END OF LISTING OF DATA SETS TO BE SCRATCHED OR RENAMED  ...
UNUSUAL
> > > END
> > >
> > >
> > > UTILITY
> > > END
> > >
> > > My JCL :
> > >
> > > //BETTYU$ JOB TIME=(5,0),REGION=5M
> > > //STEP1 EXEC PGM=IEHPROGM
> > > //DD1 DD DSN=BETTY.JCL.PDS,DISP=SHR,VOL=SER=KMCG03,UNIT=3390
> > > //SYSPRINT DD SYSOUT=*
> > > //SYSIN DD *
> > >    RENAME DSNAME=BETTY.JCL.PDS,
X
> > >                NEWNAME=BETTY.JCL1.PDS,VOL=3390=KMCG03
> > > /*
> > >
> > > The above Error message Popped up due to Intended NEWNAME was
already
> > in
> > > Use(Means Already catalogued). This I found when I tried Renaming
via
> > TSO
> > > command "R".
> > >
> > > I am just confused why IEHPROGM utility is throwing a different
> > message
> > > for renaming whereas the TSO commands gives out a different
message
> > for
> > > renaming.
> > >
> > > What Macro is invoked when we try to Rename using TSO command "R"
> > beside a
> > > dataset ? What is the difference between the two methodology ?
> > >
> > > Could anyone please enlighten me ?
> > >
> > > Jakes
> > >
> >
> > The main difference between rename by TSO and by IEHPROGM is that
TSO
> > tries to recatalog the dataset (and discovers that the new name
already
> > exists), while IEHPROGM concentrates only on the VTOC of the disk.
After
> > renaming the dataset on disk, you will have to recatalog it
yourself.
> > While processing the dataset on disk, IEHPROGM sees that it is
'password
> > protected' and you did not specify the 'correct password'. Is the
disk
> > SMS managed?
> >
> > Kees.
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