Have you tried manually removing the account and then remaking it? If it doesn't show up on the user accounts in the cp, go to Control Panel>Administrative Tools>Computer Management>System Tools>Local Users and Groups>Users. Then just right-click on the name and delete it. If the name is not listed there then you might have a bit of a problem....
I don't even have 'Local Users' or 'Group' under the System Tools heading...
I had a thought tho, I have disabled some services, so presumably that could affect this...no worries I'll try to see what I need to re-enable.
HC: I tried turning off the fast switching but no difference

It's not a massive deal anyway, my 'normal' user works fine as before, it just bugs me a little having stuff not work right.
Thanks for the help guys