Instructions
Log into ̶0;Animal Crossing: City Folk." Rover will appear and will verify the time and date in your town. He then will ask if you want to ̶0;get started." A menu will appear in the lower right corner of the screen with a list of responses for you to choose from.
Use the Wiimote to select ̶0;Other Things."
Select ̶0;Rebuild the Town̶1; from the menu list. Rover will explain the consequences of rebuilding your town, such as losing all of your house information, bells and character information. Confirm to continue.
Select ̶0;Rebuild it all̶1; to verify that you would like to start over. Once the town has been rebuilt, you will be able to rename your town.