diff -ruN moodle-1.7/admin/user.php public_html/admin/user.php
--- moodle-1.7/admin/user.php	2006-11-01 19:11:21.000000000 +0000
+++ public_html/admin/user.php	2006-11-01 18:34:42.000000000 +0000
@@ -111,7 +111,7 @@
             }
         }
 
-        redirect("$CFG->wwwroot/user/edit.php?id=$user->id&course=$site->id");
+        redirect("$CFG->wwwroot/user/edit.php?id=$user->id&course=$site->id&createuser=1");
 
     } else {                        // List all users for editing
 
diff -ruN moodle-1.7/user/edit.html public_html/user/edit.html
--- moodle-1.7/user/edit.html	2006-11-01 19:10:55.000000000 +0000
+++ public_html/user/edit.html	2006-11-01 19:21:22.000000000 +0000
@@ -26,6 +26,11 @@
 if (has_capability('moodle/user:update', get_context_instance(CONTEXT_SYSTEM, SITEID))) {
     $theadmin = get_admin(); // returns false during install
     $adminself = (!empty($theadmin) and ($theadmin->id == $USER->id) and ($USER->id == $user->id));
+
+// if we are creating a user - remember this
+    if ( $createuser ){
+	echo "<input type=\"hidden\" name=\"createuser\" value=\"1\" />";
+    }
     echo '<tr>';
     echo '<th>'.get_string('username').':</th>';
     if ($adminself || is_internal_auth($user->auth) ){
diff -ruN moodle-1.7/user/edit.php public_html/user/edit.php
--- moodle-1.7/user/edit.php	2006-11-01 19:10:54.000000000 +0000
+++ public_html/user/edit.php	2006-11-01 19:11:55.000000000 +0000
@@ -5,6 +5,7 @@
     
     $id     = optional_param('id',     0,      PARAM_INT);   // user id
     $course = optional_param('course', SITEID, PARAM_INT);   // course id (defaults to Site)
+    $createuser = optional_param('createuser', 0, PARAM_INT);
 
     if (empty($id)) {         // See your own profile by default
         require_login();
@@ -232,6 +233,27 @@
             }
 
             $userold = get_record('user','id',$usernew->id);
+           // create new user if creating new user and old username isn't changeme
+           if( $createuser and ($userold->username != "changeme") ){
+             // this should be functionised really from admin/user.php
+             $blankuser = new object();
+             $blankuser->auth         = 'manual';
+             $blankuser->firstname    = '';
+             $blankuser->lastname     = '';
+             $blankuser->username     = 'changeme';
+             $blankuser->password     = '';
+             $blankuser->email        = '';
+             $blankuser->lang         = $CFG->lang;
+             $blankuser->confirmed    = 1;
+             $blankuser->timemodified = time();
+
+             if( ! $usernew->id = insert_record('user', $blankuser) ){
+                   error('Could not start a new user!');
+             }
+             $userold = get_record('user','id',$usernew->id);
+           }
+
+
             if (update_record("user", $usernew)) {
                 if (function_exists("auth_user_update")){
                     // pass a true $userold here