Roaming Profiles would solve that problem if you used that feature.
You can copy profiles from/to existing accounts.
First you need to log on as a user with local admin privilages, that is neither the account you want to copy from or copy to. Its then generally a good idea to go to the Control Panel, and in Administrative tools, Folder Options, on the View Option make sure that the option to Show Hidden Files and Folders is selected. It is also a good idea to make sure that the Hide Extensions for known file types is NOT selected so you can identify files more easily later on.
Then exit the control panel. Right click on My Computer and select Properties, Advanced, and click on SETTINGS under User profiles. Select the source profile and then COPY TO another user option. Copy the existing profile to C:\Documents and Settings\Username (where username is the target account), making sure that you change the 'Permitted to use' option to 'Everyone' so that the new users will have the necessary permissions on the profile. Confirm the action replacing the existing profile when prompted.
You can use the same method to copy a profile to "default user" to which is then copied to all new users the first time they log on.
or
Even if you do copy an account to another folder, the
domain will see the difference between a local profile and a domain one. If you set up eveyrthing as the local account, and then copy it to another folder called USER, when you log on with that user name, XP will see that it's a local profile and make a new one called USER.DOMAIN, thus not migrating all of the studd you set up.
The best way to do this is with the User State Migration Tool provided by Microsoft.
http://technet2.microsoft.com/WindowsVista/en/library/91f62fc4-621f-4537-b311-1307df0105611033.mspx?mfr=true
This allows you to copy user profiles from one PC to another, or migrate accounts between domains. It should work for you.