> Maybe it is just me but in the default filesystem security for a Vista
> installation, why would a regular user be allowed to create folders in the
> root of the C: directory? It seems to me that regular users shouldn't be able
> to create folders or files outside of their profile unless given explicit
> permission by the administrator.
The rationale is that many users like to pollute their %systemdrive%
directory with data instead of putting it where it is more manageable.
Prohibiting that would lead to loud screaming, teeth gnashing, and general
unhappiness of a kind unjustified by the facts of the case but still leading
to articles about "monopolies," "tyrannical operating systems," and "my Mac
not only makes me cooler and better dressed, but it doesn't try to dictate
how I use my computer."
> Can anyone explain this to me? Also, is there a reference somewhere on what
> the default filesystem permissions are of a Vista installation?
I'm not aware of a place where Microsoft documented these permissions, but
they are documented in third-party sources. I spent some time on it in
Windows Vista Security:
http://www.wiley.com/WileyCDA/WileyTitle/productCd-0470101555.html. 
Microsoft Windows Vista