Abrupt stop at create profile screen! Help!

Question

Hi!
The thing is, I "lost" the admin password of my Mac (My Dad changed it and forgot what it was since he never uses it. It's stupid, I know), and I've tried resetting it. So, what I did was boot it with the Installment CD in it and hold down the C-button.
I went a few steps (accidently did, but didn't erase anything, just the first language steps & so on) then remembered to use the Menu. So I used the Menu, went into Utilities and clicked on Reset Password.
I reset the password for the admin account, and help down the Start button at the back of the computer to shut it down quickly (this might have been what cause the problem ahead..).
As I rebooted, the login screen came up. I entered the Admin name and the new password.
Refusal.
So I tried with old passwords.
Refusal.
I rebooted with the C-button held in and went back to reset password - but there was no admin account anymore, it was gone from the HD!
What to do? Well, I went to my brother's computer (this one) and searched the internet. I found a nice site that helped with creating a new account using a few simple commands in the cmd-S mode;
/sbin/fsck -y
/sbin/mount -uaw
rm /var/db.applesetupdone
reboot
After a while, it rebooted and welcomed me with the movieclip showing "Welcome" in a number of languages. At the very end, it froze, and a few minutes later the tutorial to create an account began.
I entered all the data, and when I turned the page to the account creation page, all I saw was a blank page with a black stripe on it. When it didn't progress for an hour or two, I pressed a button to confirm that it hadn't froze - it still made the beep sounds of when a key stroke is denied.
So here I am, with a locked down computer with no account to log in with and no way to reach account creation.
Can you help me or do I have to reboot the HD completely and reinstall the OS X? (I'd rather not reinstall, because I've got a lot of files and programs on the HD)

Answer 1

Try these steps...
"Try Disk Utility
1. Insert the Mac OS X Install disc that came with your computer, then restart the computer while holding the C key.
2. When your computer finishes starting up from the disc, choose Disk Utility from the Installer menu. (In Mac OS X 10.4 or later, you must select your language first.)
*Important: Do not click Continue in the first screen of the Installer. If you do, you must restart from the disc again to access Disk Utility.*
3. Click the First Aid tab.
4. Click the disclosure triangle to the left of the hard drive icon to display the names of your hard disk volumes and partitions.
5. Select your Mac OS X volume.
6. Click Repair. Disk Utility checks and repairs the disk."
http://docs.info.apple.com/article.html?artnum=106214
Then Safe Boot from the HD, (holding Shift key down at bootup), run Disk Utility in Applications>Utilities, then highlight your drive, click on Repair Permissions, reboot.
The usual reason why updates fail or mess things up, is if Permissions are not fixed before & after every update, with a reboot... you may get a partial update when the installer finds it doesn't have Permissions to change one obscure little part of the OS, leaving you with a mix of OS versions.
Some people get away without Repairing Permissions for years, some for only days.
If Permissions are wrong before applying an update, you could get mixed OS versions, if Directory is the slightest messed up, who knows!
If many Permission are repaired, or any Directory errors are found, you may need to re-apply some the latest/biggest updates.
May even need to do an Archive and Install if you have room on the HD...
http://docs.info.apple.com/article.html?artnum=107120