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Here is the official word from Microsoft TechNet, The C:\Users folder is shared when any sub folders from C:\Users\<username>\ is shared. The article is stale and mostly unhelpful, but worth knowing to complete the story.
I need to make sure sharing wizard is turned offf on my Vista machines. Is there a ay do due this via Group Policy or by pushing a regristry key? Determines whether users are allowed to share files within their profile to other users on their network. Sharing of any kind is enabled only when an administrator has turned on file sharing on that computer. If you enable this policy, users will not be able to share files within their profile using the sharing wizard.