The %user% is your Windows account and the %account% is your AoC account. Make a backup of the %account% folder somewhere and remove your account folder. When you start Age of Conan all your preferences ingame will be gone, but this could fix your problem.
Seems like the same suggestion as ComicKing / Blackamber, which didn't work. However, on the off chance that the prefs folder also has some hidden files that affect the configuration, will give this a shot as well and report back the results. Thanks.