Windows XP creates corrupted User Accounts

When trying to create a new user account, it creates a
corrupted user account every single time. When I try to
log in, it says the user account is corrupted and will be
using a default Windows profile instead. I already
checked the Microsoft Knowledge Base for it but found
that the solution stated there did not work. Is there any
way to fix this problem?
Windows XP was reinstalled once (not clean install) and
later installed SP1. The current user account that I'm
using was created BEFORE these changes. I really need to
create a different account with different settings to run
Visual Studio .NET. Help is greatly appreciated.