Everything you described is completely normal for Windows 7.
- The hidden files you see are standard hidden files, used for various system tasks. They exist on any Windows computer.
Documents and Settings,
Default User, etc., have all been renamed in Windows Vista (and, therefore, in Windows 7).
Documents and Settings is now called
All Users is now called
Default User is now called
Default. What you are seeing is links created for programs that aren't written for Windows Vista/7, so that any reference they make to
Documents and Settings will still work. You are not supposed to be able to open it in Windows Explorer.
It sounds like you turned on "show hidden files and folders". To turn it back off, hit
Alt+T in Windows Explorer, select Folder Options, go to the View tab, and select "Don't show hidden files, folders, or drives".