Why have you added the "Windows Server PowerShell" tag? This isn't a PowerShell problem.
If you can log on in safe mode with the local administrator account, try adding a new local user and logging in with the new user.
If the profile service is running and you still receive that error you may have to remove the local users' profile from HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\ProfileList.
You'll need the users' SID to find the profile in that part of the registry.
Beyond that, perhaps someone from the other groups you've tagged will provide more help.