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Found a resolution... There is a piece of code in the QuerymodeChange event of the Resource form that which throws the message "RenameReservations and SendNotice Rename".
This message gets trigerred twice for two different conditions. One of the conditions say if Old name of the resource is the Ubound entry in the ($PrevBusyName) field and yes it was there...
Used the toolbar magic button to clear the Ubound value only and the document was editable.
thanks all for your ideas.
Feedback response number WEBB92AB6K created by ~Laura Dwofreemarader on 11/22/2012