OS X / fsck / apps dont work no control panel

Alright.

My neighbor kid brings me his iBook and says nothing works. He decided to move the file system to his likeness and that semed to create the problems. Now he doesn't have access rights to his home.
I have run fsck over and over again and I keep getting ** fs modified **
I have also run the Disk First Aid from the CD.
I also downloaded a "Repair Privleges" prog on another machine, burned to CD, and ran that. All was repaired.

Any ideas?

Thanks so much.

Maxwell