Is there any way of booting up and erasing the user account and creating a new one. I can't login, so I don't know what version of OSX this is.
It's a white Macbook with a 2.16GHz processor. Model A1181
Looks like you have a 2007 MacBook running a Core 2 Duo. If it has enough RAM installed it should run Lion, but Apple dropped official support on Mountain Lion. Unless it's been "recently" updated, it's probably running Snow Leopard.
Good news is that you can reset the password... But you'll need to boot into Safe Mode and execute some Terminal commands. Terminal provides unadulterated access to the full power of OS X's Unix core. You can also do severe damage with a few misguided keystrokes.
You've reset the password. Repeat steps 5-7 for any other accounts on the machine.
To reboot into the "normal" OS X type: - reboot
When prompted, login to that user account with the new password.
If it has been upgraded to Lion, then it might have a recovery partition on it. Try holding down command-R while you boot it up. If you get into recovery, then you should be able to perform a wipe and reinstall.
If it's not running Lion, you will probably need to obtain a Snow Leopard DVD to do the same thing. Once you've installed SL, you can upgrade to Lion.
I do not believe Mountain Lion is an option for this machine.