very long "Logging in" screen, followed by loading into Temp profile

Attempting to help my friend out with a computer problem.

She starts up, logs into acccount, gets a 10 minute wait at the loading/welcome screen, then gets logged into a temporary account. it still says she is logged in under her name in the start menu, but it is the default screensaver, and desktop files are not present. It also goes into the computers default demo mode on timed intervals of non-use.

In regedit under HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\ProfileList There were 2 subfiles which were identical. I deleted the one that had /TEMP in the ProfileImagePath subfolder, and removed the .bak from the file that had the correct username in the Profile Image Path.

...and I think I made it worse. I attempted to log in and got this after a long welcome screen:
"the local session manager service failed the logon"
and
"the group or resource is not in the correct state to perform the requested operation"

I am logged into the 2nd account she has, and I am trying now to make a new account so i can transfer her old files over to the new one. However when creating a new account it won't let me enter a name!
Everytime I enter a name no matter what it is, I get this message saying "The specified account name is not valid, because account names cannot contain the following characters: /\[]":; etc"
My attempted account name does not contain any of these characters

This is a Lenovo all in one Ideacentre. running Windows 7 professional 64 bit
intel i5-2310 @2.9GHz
Ram is 6GB

I forgot to mention I am logging into a non-administrator account. I tried to make the account an administrative one, but the changes won't stick. I also tried to make another admin account thru various methods, all of them were denied.

I attempted to activate the hidden Admin account via the cmd window, access was denied.

Thanks for the reply. Not sure if you posted the right link, that one is for saving windows 8 themes (?).

I was able to get into the original account and make a new admin account. I am now attempting to copy all document files over from the old account to the new account. I am following the steps I found by going to Start>help and support then search for "profile" and selecting "fix corrupted profile".

However I am having trouble pasting all files. it gets to about 90% and the copy bar freezes, and on one occasion it turned red.

great, thanks for the link.

Unfortunately, I cannot even complete part 1 of Step 2 (back up user profile) almost everything i try to do freezes up the computer. I try to back stuff up only to have it freeze. I have tried to complete virus scans, which also freeze. Sometimes even trying to log into accounts i just get a never ending "welcome" window.

I've tried running a startup repair and it doesn't find anything. I don't think restoring to an earlier point is an option either, as the only restore she has on here is from 2 years ago, and would affect almost all the programs she has.

she did have all her C drive backed up via Crashplan, so I could wipe and re-install, I'd rather not have to re-install all her software though.

I basically cannot perform any action while logged into an account, safe mode or otherwise. I either get some sort of software error, or the system will not respond.

I booted up via a system repair disk and ran command prompt. SFC /SCANNOW /OFFBOOTDIR=[C]:\ /OFFWINDIR=[C]:\WINDOWS

I got an error in cmd prompt: "Windows Resource Protection could not start the repair service"

I'm running out of ideas. any help would be appreciated.