What kinds of things do you want to transfer? If it's just documents and media files, it's easy to just move them into the new user's Public folder.
For troubleshooting a sick login account, do what you plan on doing: create a new one. However, I'd try using it first to see if that one beachballs without any of your previous account's stuff.
If the new account doesn't work out, the next step is to do an archive-install of your operating system. It's quick and easy and resolves many common problems.
Have you installed anything in InputManagers, any kext files, or any resent software/hardware?