XP loads up a temporary profile

This is possibly malware/trojan related, but this is not my computer so I cannot vouch for what has or has not been downloaded. I will be attaching a HijackThis log.

Okay. My mother called me the other day and told me her computer was broken. Expecting the worst [dead mobo, RAM, etc.] I went over and was pleased to see XP could load and none of the hardware was faulty.
It seems upon loading XP will revert to factory as if this is the first time loading the OS entirely. Desktop is empty, all settings are reset etc. etc. Thinking it was a User Profile issue I went there through Sys. Properties -> Advanced -> User Profiles and lo and behold I was right. There is two.

PC/Administrator - Size - Local - Local - 16/01/2010 [Contrary to what User Accounts tells me I am not logged in on this profile]
PC/Windows - Size - Local - Local - 12/03/2010 [Options are greyed out, I'm guessing this is what I'm logged in on]

I don't know where to go from where and I do not want to mess with it further without input from those knowledgeable.

As said before this is the HijackThis log: http://pastebin.com/37pp5HYN