1 yes it is part of a default install, same with the "All users"
For local users - If no user profile exists when the user logs on, the contents of the Default User profile folder are copied to the C:\Documents and Settings\username folder.
For domain users - The NETLOGON share on the domain controller is checked for a default user profile. If one does not exist, it copies the contents of the local Default User profile folder to the local computer NETLOGON\username directory.
The default user settings are used to create a new user's profile when the new user logs on the first time. The administrator may modify the contents of the Default User profile directory to change the settings for first time users of the system. The Control Panel, System applet is used to copy user profiles. The "User Profiles" tab is used. The System applet is also used to delete user profiles. Shortcuts may be added to the Default User profile directory using Windows Explorer
http://www.comptechdoc.org/os/windows/win2k/win2kusers.html
Document says 2000 ,this hasnt changed