Was it an in-place upgrade from XP to 7, or a fresh install?
If an upgrade, i've seen it do funny things with permissions on documents/files that are part of the old XP user's profile - 7 is a bit more secure and can assume that the new user setup in that OS is a different person to the old XP user - therefore denies access to their old files.
If you are the only person using your PC, and aren't overly worried about file security, then what you have done is fine. 'Authenticated Users' is just a built-in Windows security group for any users who have successfully logged into the system. If you have multiple logon accounts to your PC that are password protected (different family members etc) then you will have granted all of these other accounts access to the files too.
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