Here's what works, (for me, period). Works with any version of Win7, AFAIK. I believe I have also tested this OK with Win8.x
This process is very good for creating a standard profile if you're rolling out many workgroup machines with the same configuration but different user logins, because it creates a new Default user, while keeping the old Default user in case anything goes awry.
It looks complicated, but it's really very simple if you're familiar with Windows in general. After you've done 2 of these, it's almost second nature to do it again, IME.
Setup a user just as you'd like it setup (as an administrative user, typically).
Login as a different user with admin rights.
Go to the c:\users folder
Change Folders and Search Options to Un-"Hide extensions for known file types"
and Un-"Hide protected operating system files" (uncheck those 2 boxes, not sure if the first is needed but easier IMO if you can see the file extensions)
Rename Default to anything unused, such as Default-xx
Copy the set-up user (you are NOT logged in as that user now, right?) into the same folder; it will be called "[set-up user] - Copy" - note that if the copy doesn't complete, you may have to reboot and try doing the copy operation again. Or you can simply reboot first and make sure. NOTE: IME, if, during the copy process, you are told that a couple of files have names that are too long to copy, it seems to be OK to ignore them. This has happened to me occasionally.
Rename that copied folder to "Default"
Right-click on Default, and uncheck "Read-only"; then check "Hidden". Click "Apply" and THEN click the radio button that says "Apply changes to this folder only". Click OK. Click "Continue" when prompted. Click OK again if necessary to close that window.
Go back to Control Panel and create whatever new user you'd like. It will take on the characteristics of whatever's in Default, which is to say, the set-up user you first created.
Check things out by logging in as the new user. And ANY new user you create will take on the same settings. Very few things don't make it to the new profile (desktop background, for instance, may not come over). No big deal, of course.
If you have another pc with the same programs installed, a copy of that originally-copied folder can be used with that as well.
If you continue to use the login you were using while you made the profile copy, you might want to re-check "Hide protected operating system files" for that user.
Let us know if this works or doesn't work for you. Been using it a couple of months now with no issues.