It looks like she has permission on her Profile, which is normal if there's a password on the account, to stop people getting in that way. It will not help to recreate the account and password on your machine, since it's locked by a long security ID (SID), not the name alone.
All her personal files should be under "X:\Documents and Settings", and I agree with the suggestion that you should take ownership of that whole folder, then change its permissions to Everyone:Read, so you can get the data off.
The situation is not quite the same as with a USB key, since keys are usually formatted with FAT or FAT32, which doesn't support folder permissions. An XP system disk must be formatted in NTFS, which has file- and folder-level security.