The steps I took to convert the domain accounts to local accounts are:

1. Windows 7 seems to be the first system not locking profiles when logging out, you can insure by reboot in order to clear any locks on user profiles.
2. Log in using local administrator account. (Enable local administrator account and set a password for it, if you didn’t did it by now)
3. if you have roaming profiles – Convert them to domain local:
   Control Panel -> System -> Advanced System Settings -> User Profiles -> Settings… -> Select account -> Change Type… -> Set to ‘Local Profile’. (if applicable)
4. Create a new local user account:
   Control Panel -> User Accounts – > Manage User Accounts – > Advanced – > Advanced
   or simply
   • Run (Start+R) -> lusrmgr.msc.
5. Run User Profile Wizard (I used v3.6),
   convert domain user to local user
6. click Next, Select the local machine name option (not the domain), enter the username for the account created in step 4 into the account name box, you can try the ‘Set as default logon’ (didn’t work for me) and click Next.
   convert domain user to local user
7. Select the domain account that you want to convert into a local account and click Next.
8. After it’s finished, test it by logging on as the local user (i.e.MACHINENAME\Username) you created in step 4, all settings and data from old domain profile should be applied. (optional)

you can Remove machine from domain and reboot.