If you're able to create new working users, I wouldn't worry about doing a reinstall. You'll likely not run across this again (as long as you don't play around with those user registry files and the registry itself -- it may be helpful to adjust your system so that it automatically hides system files).
The following link is for Vista, but you may find it useful (especially regarding any email accounts you may have associated with the corrupt user account): Fix a corrupted user profile
Although the title mentions "fix" a user profile, it's really just a method of recovery by doing what you've already started. The old corrupt profile gets deleted in the end, it doesn't get "fixed".