Moving from one User Account to another on same computer

I am experiencing problems running Windows 7 (desktop background is frozen, gadgets and utilites files are missing etc.) yet when I create a new user account then log onto that, Windows 7 runs fine (fix suggested by Cybercore). My question is, can I simply transfer settings and files from the old user account to the new one then delete the old one? Presumably this would then delete whatever the problem was - or do I still have a rotten apple somewhere in the system?
If deleting the old account is practical, what is the best way to go about transferring settings & files to new user account (e.g. e-mails etc)?
Would appreciate thoughts on this.

To verify that your system is not broken:

1. Check your hard drive for errors with chkdsk /f
2. Check your system integrity with sfc /scannow, have your 7 installation DVD in the drive while scanning.

Ran both chkdsk and sfc scans - both can find no problems with integrety of system however, I can only do these scans while logged on to the new User Account you suggested (which displays no problems). If I try while in my old account I cannot run C: prompt as an administrator. This because the Accesories file (where I can right click to Run as Administrator) is nowhere to be found. I can get the C: prompt only by pressing Ctrl+Shift+Enter when I have cmd in the Run box.