Macbook admin password reset

I forgot my admin password and dont have installation cd of my 10.5.8 OS X. I tried to reset from terminal window using <passwd username> but did not work. So I tried to create a new admin account from terminal window. After rebooting, it looks like I got to set up a new account. I did. It took a long time but evantually got into the system but not letting me do anything. It behaves wired. Wont let me open any folder or app. Some times it wont let me use keyboard properly! And everytime it takes a loooooooooooog time to boot. Can anyone help?

I was also thinking of purchasing $29 snow leopard update and clean install the OS. But I dont want to loose 2 of my installation as well (CS4 and Adobe pro) as I dont have thos installer any more either!!