Ok, just when I thought I saw it all..
Trying to create a new user on my Windows 7 laptop. The process works, but when I try to log in I get the "User profile can't be loaded" error.
Back to the other account and I see that the C:\Users\Default is missing and the data can't be copied from it to build the new user profile.
Any tips on restoring this would be greatly appreciated. I'm thinking I can grap the folder off my desktop PC but I thought I'd check here first.