You have mentioned a few times that, booting up into Safe Mode, that takes you directly to the husband's 'limited user' account.
It shouldn't. It should take you to a list of Safe Mode options, the first of which is "Safe Mode". Highlighting that, (it should already be highlighted), and pressing Enter on the keyboard, should display a list of available accounts on the Welcome Screen. What accounts are displayed on that screen?
The other thing perhaps you can explain in more detail please. You said that you booted into Safe Mode and it came up her husbands account, then you deleted that. How did you do that? As far as I am aware you would need to be logged in as an Administrator to be able to delete any other account. A user cannot delete an account they are currently logged in to, and they cannot delete accounts from a limited user account.
One more. When you looked in the Control Panel. Does this mean you have been able to log into XP as an Administrator?
If you have access as an Administrator, then what is preventing you from creating another Admin account for your friend?
In My Computer, can you navigate to the C drive, Documents and Settings? If so, can you see your friends Account folders there? If you can, can you access those folders?