Location of new user profiles changed ? why ?

My XP Home SP2 (fully updated) now creates new user profiles in a sub folder to DoS,
named . No matter if the new user is set as an administrator or not.
For a newly created user named ?Test1? I got:
ProfileImagePath = %SystemDrive%\Documents and Settings\MYHP3350\Test1,
My old standard user has:
ProfileImagePath = %SystemDrive%\Documents and Settings\Hans Kasche

The ProfilesDirectory value is still = %SystemDrive%\Documents and Settings.
The computer is part of a small home net, workgroup = HKHOME.