Get yourself a copy of SysInternals Junction.exe to see what is going on.

Here's a typical user directory seen vis dir and then junction:

C:\Users\postgres>dir
 Volume in drive C has no label.
 Volume Serial Number is 8C78-4B42

 Directory of C:\Users\postgres

03/09/2009  11:20    <DIR>          .
03/09/2009  11:20    <DIR>          ..
26/12/2010  07:31    <DIR>          Desktop
24/03/2009  06:46    <DIR>          Documents
02/11/2006  12:34    <DIR>          Downloads
02/11/2006  12:34    <DIR>          Favorites
02/11/2006  12:34    <DIR>          Links
02/11/2006  12:34    <DIR>          Music
02/11/2006  12:34    <DIR>          Pictures
02/11/2006  12:34    <DIR>          Saved Games
02/11/2006  12:34    <DIR>          Videos
               0 File(s)              0 bytes
              11 Dir(s)  300,875,481,088 bytes free

C:\Users\postgres>junction *

Junction v1.05 - Windows junction creator and reparse point viewer
Copyright (C) 2000-2007 Mark Russinovich
Systems Internals - http://www.sysinternals.com

\\?\C:\Users\postgres\Application Data: JUNCTION
   Print Name     : C:\Users\postgres\AppData\Roaming
   Substitute Name: C:\Users\postgres\AppData\Roaming

\\?\C:\Users\postgres\Cookies: JUNCTION
   Print Name     : C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Cookies
   Substitute Name: C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Cookies

\\?\C:\Users\postgres\Local Settings: JUNCTION
   Print Name     : C:\Users\postgres\AppData\Local
   Substitute Name: C:\Users\postgres\AppData\Local

\\?\C:\Users\postgres\My Documents: JUNCTION
   Print Name     : C:\Users\postgres\Documents
   Substitute Name: C:\Users\postgres\Documents

\\?\C:\Users\postgres\NetHood: JUNCTION
   Print Name     : C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Network Shortcuts
   Substitute Name: C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Network Shortcuts

\\?\C:\Users\postgres\PrintHood: JUNCTION
   Print Name     : C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Printer Shortcuts
   Substitute Name: C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Printer Shortcuts

\\?\C:\Users\postgres\Recent: JUNCTION
   Print Name     : C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Recent
   Substitute Name: C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Recent

\\?\C:\Users\postgres\SendTo: JUNCTION
   Print Name     : C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\SendTo
   Substitute Name: C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\SendTo

\\?\C:\Users\postgres\Start Menu: JUNCTION
   Print Name     : C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Start Menu
   Substitute Name: C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Start Menu

\\?\C:\Users\postgres\Templates: JUNCTION
   Print Name     : C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Templates
   Substitute Name: C:\Users\postgres\AppData\Roaming\Microsoft\Window
+s\Templates


C:\Users\postgres>
[download]