Hi Squad, right, at least we think we know where the problem lies. It should be possible to delete the profile files from within c:documents and settingsUSERNAME, but I would suggest you first remove the profiles from the system configuration. (This may help with previously locked files etc.)
You need to right click on "My Computer" and select PROPERTIES.
Select the ADVANCED tab, then the USER PROFILES button half way down the screen.
Inside there it will list all users who have a profile on that machine. If you delete the affected users in here, and then try logging in again, you may not need to delete the source files, as the server should create a new profile automatically.
If there is more than one profiles for a specific name, make sure you delete the one with a STATUS of ROAMING.
Try that and let me know how you get one.
Good luck, CI