My Microsoft Vista Home Basic was locked and asking for a password which accidentally was typed by my granddaughter. So it is asking for a reset but I was not able to make or save a password resent in a USB. What can I do to solve this problem. I don't have a CD of the software since it was pre-installed in my laptop.

Try going to this website and follow the directions.

http://pcsupport.about.com/od/windowsvista/ht/reset-password-windows-vista.htm

you can use Smartkey Windows Password Recovery to help you to reset windows computer password, and see the detail direction from http://www.recoverlostpassword.com/products/windowspasswordrecovery.html

To reinstall put the installation disc into the computer and restart. Tap f12 while the bios is loading and select boot from disc. This will allow you to reinstall. Otherwise go to http://www.password-changer.com/ and make a bootable disc. This disc will allow you to clear the password from your machine.
If you have more questions feel free to ask me.

Use this http://pogostick.net/~pnh/ntpasswd/

You can create a Vista password recovery disk to reset your password. Follow this 5 easy steps:

1. Enter a computer that can link to Internet. Search "windows password recovery tool" in Google. Download and install the software on that computer.

2. Run the software and create windows password reset disk by follow the instructions.

3. Eject the created CD/DVD and insert it into the locked computer.

4. Reboot the locked computer (it's necessary for you to change your locked computer's BIOS setting to make it boot from CD drive) and then follow the instructions to recover vista password.

5. Now login Windows and set a new password.

check your caps-lock key while u r entering password

Insert vista dvd in boot mode and try to repair it after booting

Yes you can upgrade it... you can upgrade it from Vista Home Basic. Follow the instruction here http://windows.microsoft.com/en-US/windows-vista/Windows-Anytime-Upgrade-frequently-asked-questions ...Thanks for using Fixya.

Open Control Panel
Open Internet Options
Open Content Tab
Content Advisor should be disabled

do repair with windows vista cd, it will solve your problem.