I would try creating her account one more time. For the troubleshooting period, leave it as an admininstrative account. When you have created it, see if you have the switch option -- and if you do, log in to it so the default setup is created. Now log out of her account and re-enter yours. Change her to a limited user and log out of your account. See if her name is shown on the screen. If you cannot --
Go into the registry (caveat -- always backup first)
Navigate to HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon\SpecialAccounts
If her account is listed, it should not have an entry for DWord with a value of 0 (this would hide the account). If it is creating accounts as hidden, try changing the DWord to 1, then restart.