U can hide the implementation details of stored procedures from end users of the application using WITH ENCRYPTION option. ENCRYPTION indicates that SQL Server encrypts the syscomments table entry containing the text of the CREATE PROCEDURE statement. The WITH ENCRYPTION clause hides the text of a stored procedure from users.
It is true that, trigger, view and procedure encryption that comes with MSSQL 2008, 2005 is ineffective and easily broken. U may use SQL Shield is a tool for protecting SQL scripts from being viewed by anybody. And it does protect it from decryption. Don’t worry, it is free and easy to use.
If u want to hide instance….
Run SQL Server Configuration Manager and select the instance of SQL Server (which u want to hide), right click to select Properties. After selecting properties a window comes. In order to hide this, just set Hide Instance to Yes and click OK or Apply. After changing, again restart the instance of SQL Server.
Remember, The name of the instance is shown in the Local Servers list, but not in the Network Servers list.