When trying to connect to a server in Management Studio (specifically 2008), there is a field where you enter the Server name. That field also has a drop-down list where it
This is the correct way of doing it
http://blogs.msdn.com/b/managingsql/archive/2011/07/13/deleting-old-server-names-from-quot-connect-to-server-quot-dialog-in-ssms.aspx