In Mac OS X 10.7, you cannot have a guest user if you encrypt the entire drive. An alternative is to create a psuedo-guest user. One of the downsides is that the feature where the guest user is restored to original state no longer exists.

How do I write a script that restores the User Template found in /System/Library/User Template/English.lproj?

I would also have to figure how to activate this script either at login or on logout.

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Actually, you can have a guest user on 10.7 on an encrypted drive. They're just limited to using Safari.

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