Windows XP encryption

Your question is very interesting that i tried out the entire thing on my system! I'm afraid the chances of recovering those files are very less. When you encrypt a file or folder in windows, what actually you are doing is to encrypt it with the Sequrity ID or SID and password of the user who who is logged in. Even if you create a new user with the same name and password its unlikely that the new user will have the same SID, and windows sees it as differnet user alltogether. Even an administrator cannot recover those files. Your only option i guess is to some how manage to find out the old SID and use some tools to create a new user with the old SID and Password. I've never done any research on that, but this is one way you could start thinking. Old SID is normally displayed in the folder sequrity settings even after a user is deleted if the user had some specail permission to that folder or file with a gost like icon. Since ur data is so important its all options worth trying.

Have you tried logging in as the Administrator? Usually, the admin has more access powers and may be able to fix your problem.

too bad for you, have you try other os like mini PE, it can enter the ntfs hard drive, and there is a few software in mini pe that can help you get the files. or, u can try to use restore setting automatically .. or try hiren boot cd, and ask for other help.