VS2010 Add Service Reference missing (Unable to add Service Reference)

Question

I have an issue that seems to be identical to this question. I am unable to add a service reference to any project in Visual Studio. I went so far as to format the entire computer, re-install Windows (Windows 7 Ultimate), and VS2010 Professional. Twice. This is a work computer that I inherited and I find it odd that, even after formatting the drive and reinstalling everything, I cannot add a service reference to any project on this computer.

I am 100% certain that .NET 3.5 is being targeted in my project's settings and even created an empty project to try it out. Same results. I am not sure what I am missing. I am pulling the original solution from TFS (nobody else has this problem) so it's not like I'm missing something in the solution.

Any thoughts?

Edit:

I just created another account (Admin as well) and I can add service references to projects under that account. Am I missing something? My original account has an apostrophe in it--would that mess things up?

Edit 2:

While this has been fixed, I am not happy with the fix-action. I will be opening up a bug with Microsoft later, but I am curious to understand what caused this in the first place and how to avoid it in the future.

Edit 3:

I opened a bug report with Microsoft (here).

Answer 1

Work Around:

My work around, as posted in my bug report, was to create a new Windows user account on the machine (making sure not to have an apostrophe in the name). For whatever reason, this new account is able to add service references but the original still cannot.

(If somebody can post a solution that allows the original account to be able to add service references, I will change that answer to the selected answer.)