Windows – Why would one user not have permission to run explorer.exe until after a different user had

User profiles on a win7 box I have the displeasure of administrating all got corrupted (windows would create a default fallback profile on each login).

I created a new profile (an administer) and transfered exiting profile files into it following this:

http://windows.microsoft.com/en-CA/windows-vista/fix-a-corrupted-user-profile

Something strange is happening. The new profile is unable to open explorer.exe

Windows cannot access the specified device, path, or file. You may not have the appropriate permissions to access the item. 

I tried a variety of things including confirming the permissions on C:\Windows\Registration:

http://www.tomshardware.com/forum/5218-63-cant-explorer#t170268

What I've noticed is that if I log in as a different new administrator user and open explorer.exe and then log in as the administrator with the problem explorer will work just fine.

What is it about the permissions on explorer.exe that cause this behavior?

What I want to achieve is to have the problem account open explorer.exe without having to log in as the other user first.

Thanks in advance.

Edit:

Here are permissions and Owner Screens of the offending profile:

Here are permissions and Owner Screens of Windows dir:

Here are permissions of explorer.exe: