XP Pro user profile corrupt ?

Archived from groups: microsoft.public.windowsxp.basics (More info?)

I'm new here but I did do a search of back posts about this. Trouble is I'm
having a little trouble understanding what to do.

Apparently something has removed or corrupted my user profile and now I
can't get past a boot up loop where I keep getting a window right after the
welcome screen labeled "User Environment".

Within that window is the message: "Windows cannot load user's profile but
has logged you on with the default profile for the system".

Below that is "Detail - A required privilege is not held by the client"

This is a stand alone computer (my wife's) with no network connections
except for a Com3 cable modem. My wife said that just before she rebooted,
she was unable to get her email or connect to any web sites. She first
tried rebooting the cable modem and then the computer.

When I try to boot in safe mode I get a screen that offers a choice of
logging on as "Administrative" or "Home". If I pick home it just goes into
that same loop. If I pick "Administrative" it asks for a password, of
which I have no clue. This computer came with Win XP Pro (SP-1) installed
on it. My work computer also has XP Pro and is working fine but it has SP-2
installed.

Any ideas ? The only potential clue I've found is that maybe the default
user profile got corrupted or replaced with something but as near as I can
tell, I have to know the Administrative password to be able to load windows
to change the settings.
Thanks,
WaltinVt