recovering data in Windows Xp

I am afraid at this point you have lost the data,after searching the drive and performing other tasks once you reboot the system the old data is overwritten,you may want to look for other file recovery software.
Good Luck

Depending on how you handled the issue with the corrupt profie, the My Documents folder in the old profile may still be available. I am concerned that you may not have resolved the cause of the corrupt profile and it may be the result of a failing hard drive. I would do these steps:
1. Run MSCONFIG from the Start-> Run prompt and perform a SELECTIVE STARTUP and uncheck the startup group items. Follow the prompts and reboot.
2. Run CHKDSK /R from the Start-> Run prompt and answer Y to all the questions. Reboot and allow the chkdsk to finish all 5 phases.
3. Open Explorer and search your local hard drive (C:) for the DOCUMENTS AND SETTINGS folder (expand and look for your wifes old profile. Inside that folder will be her MY DOCUMENTS folder. Her lost documents may be there. If so, just copy them to her new MY DOCUMENTS folder.
4. Run MSCONFIG from the Start-> Run prompt and set it to NORMAL. Follow the prompts and reboot.

System REstore is used to restore system files NOT documents. A good backup of user files is recommended to prevent this from happening! I would set up a scheduled task to backup data to CD, another disk etc.

See
http://www.pcreview.co.uk/article-4583.php
http://support.microsoft.com/default.aspx?scid=%2Fdirectory%2Fworldwide%2Fen-gb%2Fbackup2.asp

If the files are important there a program that can be used to recover the files. Its not that expensive and there's a demo version that allows you to see if you can find the files first.

http://www.r-tt.com/