Microsoft does not recommend changing the user folder. I've looked into this myself -- the repercussion from moving it could be that when you run Windows updates, it might fail to apply to your system. Microsoft has given users the option to change the location for certain items like 'Pictures', 'Music', etc. You can do this by simply clicking on the "Move" button as shown in my screenshot.
In Windows Exploer, navigate to:
1. C:\Users\{username}\
2. Right-click on 'My Pictures' folder
3. Click 'Move' Button
However, if you're still hellbent on moving the entire user folder, check out the following thread.
http://social.answers.microsoft.com/Forums/en-US/w7files/thread/565f16a5-e5ed-43c9-8422-4f56aebb296e