Creating Default User Profile In Windows 7 64bit?

Since windows 98, We have always been able to do the first time logon, setup all the applications, desktop settings, IE settings, everything, with a 'profile' user. We then rebooted the machine, logged on as administrator and Deleted the contents of the 'default user' folder and copied that 'profile' user sub folders into the 'default user' folder. We would then reset the permissions on that, 'default user' and all the sub folders of the 'default user' folder to allow access. This way when ANY user logs into the machine all the settings are as they should be rather than having to go through them all again from the beginning each and every time a FTL (first time logon) occurs.

It is also very good when a profile becomes corrupted and you have to start over. When I try this in windows 7 64bit I've now messed it up so that any new user that logs in gets an error message saying they've been logged in with temporary profile and all changes will be lost when log out. Although, all the setting seem to be there. So I'm just missing the something that tells windows 7 this new default is ok. Can this still be done? What are the steps now? What has changed and how do we accomplish this, at one time, simple task? {I have done this successfully with Vista 32 bit} .