I know this post is old and the solution could be some where but I have not seen it. In Windows XP Log in as local administrator or an account that has Admin rights. Create the account (make all the accounts admin the process just seems to work better) in user accounts close,
reboot and log into the account to finish creating,
reboot to the admin account which can not be the source or destination account,
Right click My Computer, go to Advanced tab, down to User Profiles, click settings,
here you will see the accounts highlight the account you want to copy
click copy to and browse to the folder with the new account name and click ok,
then click ok again to copy the account when you get the copy confirm click yes, wait and then wait some more for it to finish
log into new account.

No cut and paste, No command line in terminal, No using ADMT or USMT, no google program.

Does that suck?