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#21
You are welcome.
I know this is an ancient post, but I created a System Restore, and followed your steps, then system would not allow me into windows, and the system restore was automatically deleted. Knoppix etc manual restore also failed. I had to do a new windows install.
Then I found the real culprit to the net user problem.
I had disabled the service called WORKSTATION.
Just go to services and start it and net user works.
Hopefully this post will be helpful for others.
I figured it out by trial and error.