'new user' conflict

'new user' conflict

Hi
We have 7 licenses and 6 active users. When we try to create a new user we get a message saying we need new licences. 
We have a new sales staff member on board who needs to use the system immediately but cannot get her installed. We set her up yesterday and sent activation email twice but she does not receive the activation email and now the system says "User does not exist" even though her name is in the list of active users - and she is inactive!! 
Can someone please fix this problem with some urgency. 

Thank you!