To recover Local machine passwords do the following
1) Boot from MiniPE cd
2) Select Hiren's Boot CD 7.9 option 1
3) Select Start Boot CD option 2
4) At the first boot menu screen select Next option 9
5) Then select Password and Registry Tools... option 4
6) Select the Active Password Changer 3.0 (NT/2000/XP/2003) option 1
7) After the program loads highlight option 2 Search for MS SAM Database(s) on all hard disks and logical drives
8) This will run for a few minutes
9) A message will pop-up stating how many MS SAM database(s) there are. Press ENTER
A list of usernames will show on the screen
10) Choose the user number you wish to reset the password on ( Administrator will be 0 )
11) Options will appear on the screen. The clear password and password never expires are selected by default.
12) Press Y to save changes. A message will appear stating the user has been reset.
13) Restart your computer. Log in the computer using the username, no password, and the local machine to log in.