"Refresh your PC" does the following:
All of your programs will be uninstalled and otherwise removed, but your files and settings should remain. I'd assume that since you did this from some new account, it assumed that it was the account you wished to preserve. But as you said, there are plenty of files left on the drive. You should be able to browse these files and try to find what you lost, supposing that users folder still remains. If you can't get into the files because of that password, boot to a linux CD and you should be able to access the files. Move them to the desktop of the new user, and you should be able to access them from within your new user account within Windows.
But at this point, a fresh install wouldn't hurt. Start fresh, as it sounds you're not where you'd like to be with your current install.