Admin has no privileges, cannot create user account

Have you run a full scan with Malwarebytes and checked System Files integrity from Troubleshooting Steps for Windows 7 ?

I wouldn't waste any more time but instead invest it in getting a perfect Clean Reinstall Windows 7 which will stay that way as long as you stick with the tools and methods given in the tutorial which has been used by over a million consumers without a single complaint or issue returned with. You'll certainly avoid the kind of corruption that you have now, which normally comes with tweaking and tools that don't work well with Win7.

Otherwise if you're particularly fond of your cripple then you can try a Repair Install.

Hi, thanks for the response. Yes, I've run extensive diagnostics and virus/malware/rootkit checks. When I got the machine, the drive had serious errors, which chkdsk fixed, but performance was in the dumper and CDI registered caution. Replacing the HD, removing unwanted programs, services, etc. brought it back to pretty impressive performance. In fact, this machine runs great in all aspects, aside from the admin privileges issue (baffling that even the hidden admin can't create a new acct, even from safe mode). As for reinstalling the OS, it's activated, but I can't retrieve the product key, so I'd have to buy a new license, and I'd like to avoid that (the product key concerned me...the guy is looking for it. He's a computer illiterate and had some tech shop do the upgrade...he's checking on the key).

Please run the Genuine Diagnostics tool (MGADiag.exe) at this link http://go.microsoft.com/fwlink/?linkid=52012. Click "Continue", click the "Copy" button then “Paste” the report into a reply message in this thread.

Will do. Appreciate the direction.

How did you transfer Win7 to the new hard drive? Are you sure there is no COA sticker on the PC anywhere (bottom or under battery in laptop, on tower back or side)?

There is a COA sticker from XP MC 2005. I imaged the drive and restored it to the new HD. But produkey returns: "Key cannot be found".

Please post the mgadiag report so we can see how it is activated.

I will. I'm imaging the partition ATM. Odd. I was checking out EV in an attempt to see what was logged when I tried to create a new user...suddenly, I can. I have no idea why. Still having some privilege issues though. Permissions. I hope I don't inconvenience you with the wait. This partition can take about 45 mins to image. I don't have to have this resolved tonight, and I appreciate your willingness to work with me - thanks. I'll post the results as soon as I finish.