change the old owners name throughout the computer to my name

You will have problems as the folder name will still be theirs. Sometimes best to wipe and start over again if you want to erase them. Thats why I don't ever personalize windows

Here's a solution: http://www.dougknox.com/xp/utils/xp_change_owner.htm This does not change User Accounts. For User Accts, set up your own account in Control Panel. After that works, you can delete the previous owner acct. or just ignore it.