Stuck in setup assistant, can't create account or access desktop

I am a new Mac user who received a used 2011 MacBook Air MC966LLA as a gift.
When I first booted it up, I received a login screen. Not having the credentials, I booted in Single User mode to bypass the login screen.
Now when I boot up (using the power button only), I get the Setup Assistant. What mode am I using now?
However, I cannot set up an account. Every time I try to set up an account and press continue, I am returned to the initial Setup Assistant screen.
I don't know if my problem is related to the Setup Assistant infinite loop bug, or if it is something else. I've tried all the weird keystroke workarounds I've been able to find in the various tech forums, but so far no luck. The Safe Mode workaround option doesn't work either, as no login screen ever appears. Just the Setup Assistant initial screen.
Any ideas what to try next? For a variety of reasons, I can't ask the giver for advice.

Ick.
Can you start from the Recovery HD?
If so, use Disk Utility there to erase the internal HD (indented, under the main line, probably named "Macintosh HD." See #2 in Using Disk Utility if you're not sure how to do that. It only takes a few moments.
Quit Disk Utility and use the Reinstall Mac OS X option to download (4+ GB) and install a fresh copy of OSX. When your Mac starts up after that, you'll be in Setup Assistant, just as if you'd bought it new, so you can select your language, create your user account, etc.

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Stuck in setup assistant, can't create account or access desktop

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