Hey Bob, it's fairly common for someone to have their files in the Administrator folder. Most people don't customize their user profiles when they first install a new OS (usually booting straight in, without a welcome screen). And if they did "play" with the user settings, how many adjustments were made along the way? :-)
I'm assuming you're also using a WinXP system to recover his hard drive? In your system's Help File, try typing in "Take Ownership" (to search) for more info. I think you're running into a "permission" problem.