Vista fails when creating new user accounts

Hi,

I am trying to create a new account in windows vista business. I am

logged in as administrator and I go to control panel and create a new

account. I then log outand log in with the new account. Vista says it

is creating desktop settings, the splash screen desappears and a series

of dialog boxes start. It then fails on windows mail with an error

dialog saying " windows mail 7 could not be installed. MSOE.dll could

not be initialized. I press OK and Vista just hangs with a completely

blank screen. The new desktop never appears. I have tried this with UAC

on and off,and with administrator and non administrator accounts. I ran

a sfc /scannow and it returned no problems. Why can't I create new

accounts

thanks