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To bind all users to a DropDown you can use the following code:
Add a dropdown to the codebefore:
<asp:DropDownList ID="DropDownList1" runat="server"></asp:DropDownList>
In code behind add the following:
DropDownList1.DataSource = Membership.GetAllUsers()
DropDownList1.DataBind()
It may be related to deleting the currently logged in user in your code with user.identity.name.
Are you using a custom Membership provider? that could also cause unexpected behaviour.