hia again, i have had a few ideas of how to remove the password.
1. You could do the bypass process using the win XP CD and repair the installation by selecting the process from the menu that will replace the critical system files thus fixing any problems you have with any system files. (it replaces things like "logonui.exe" which is the logon screen in XP). This might work but i haven't done it before so i don't know wether it gets rid of the passwords too.

2. You can probably do it if he has a FAT hard drive and not an NTFS by going to this site and downloading a bootdisk or sumthink that shud allow you do it.
http://home.eunet.no/~pnordahl/ntpasswd/. Make sure you read the whole site first otherwise you cud screw ur system up.
3. if all else fails then you can backup the files you need on ur pc using the commands for the recovery console below. And then just do a simple re-format.
Good Luck

Recovery Console Commands Are as follows:
The following commands can be used with the Windows 2000 Recovery Console:
Attrib
Changes the attributes of a file or directory.
Batch
Executes the commands specified in the text file.
ChDir (Cd)
Displays the name of the current directory or changes the current directory.
Chkdsk
Checks a disk and displays a status report.
Cls
Clears the screen.
Copy
Copies a single file to another location.
Delete (Del)
Deletes one or more files.
Dir
Displays a list of files and subdirectories in a directory.
Disable
Disables a system service or a device driver
Diskpart
Manages partitions on your hard drives.
Enable
Starts or enables a system service or a device driver.
Exit
Exits the Recovery Console and restarts your computer.
Expand
Extracts a file from a compressed file.
Fixboot
Writes a new partition boot sector onto the system partition.
Fixmbr
Repairs the master boot record of the partition boot sector.
Format
Formats a disk.
Help
Displays a list of the commands you can use in the Recovery Console.
Listsvc
Lists the services and drivers available on the computer.
Logon
Logs on to a Windows 2000 installation.
Map
Displays the drive letter mappings.
Mkdir (Md)
Creates a directory.
More
Displays a text file.
Rename (Ren)
Renames a single file.
Rmdir (Rd)
Deletes a directory.
Set
Displays and sets environment variables.
Systemroot
Sets the current directory to the systemroot directory of the system you are currently logged on to.
Type
Displays a text file.
l8r
Tris