hp a406X      
WINDOWS xp  

I did a full restore regained back enough SPACE to reactivate my restore points,
My DESKTOP seems to be running well, I have problems with shortcuts not working.
My problem is I have old users at least one may have adm. privledges or owner status.
Can I delete these and regain all that space or will i create more problems?  I deled two without problems, so far.

  [smiley=beer.gif]Exactly what do you mean by "full restore"?  Clearly, you did not erase the HARD drive and do a fresh INSTALLATION Windows.  If you had done this, you would not still have those other user accounts.  So, exactly what did you do to regain some space?

How large is your hard drive?  How much free space remaining?  To check this, go to My Computer, right click on the drive and select Properties.

Exactly what happens when you try to start an application or open a file from a shortcut?

You've basically answered your own question about deleting more old user accounts.  Sure, you can delete more of them without causing problems.  
Do not simply delete the user accounts from within Explorer. Use the Control PANEL>Users applet.
To free up space download, install and run [highlight]CCleaner[/highlight].