The instant the new sheet is created it is the activesheet so on the next line of code
activesheet.name = "Sheet1" should rename it to Sheet1.



Myself, probably wouldn't delete the original sheet, would use .cells.delete to just clear everything from the sheet. It would then be blank same as the added sheet would be.

Seeing you're using the macro recorder this would be clicking the square above the row numbers which selects all cells then hitting delete.