Unable to create new user on Win 8.1

I have a new laptop running Win 8.1 pro. Using my 'main' account everything is good and the laptop is connected to the internet.
I try to create a new user for my daughter by selecting "change pc settings" from the charms bar, then new account. I enter the email address for my daughter's existing microsoft account - one that works fine when used to login on a different win8.1
laptop.
When I try to login on the new laptop using the new account I get the message "The user profile service failed the sign-in" On checking the event log I can see the following sequence of warnings / errors:
*Windows cannot copy file \\?\C:\Users\Default\AppData\Local\Microsoft\VSCommon\12.0\SQM\sqmdata-7204-039-00000.sqm to location \\?\C:\Users\georg_000\AppData\Local\Microsoft\VSCommon\12.0\SQM\sqmdata-7204-039-00000.sqm. This error may be caused by network
problems or insufficient security rights. 
 DETAIL - Access is denied.*
*Windows cannot find the local profile and is logging you on with a temporary profile. Changes you make to this profile will be lost when you log off.*
*The winlogon notification subscriber <Profiles> failed a critical notification event.*
*Windows cannot log you on because your profile cannot be loaded. Check that you are connected to the network, and that your network is functioning correctly.* 
 *DETAIL - Only part of a ReadProcessMemory or WriteProcessMemory request was completed.*
Could anyone please suggest what I can do to fix?

I shall suggest you to go through a System Restore.
Select any restore point when there was no such issue.
S.Sengupta, Windows Entertainment and Connected Home MVP

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