So, my hint has two parts, the first is to make a directory called 'ms crap' or something in your Library. Now, make an alias of this folder and move the alias to your Documents directory. Rename the alias you just moved to "Microsoft User Data" (just move the contents of the old Microsoft User Data folder over to the folder we just created in the Library). This fixes the user data showing up on my incremental back-ups. However, we'd like to get a little more sophisticated because its ugly seeing this folder that doesn't belong there in the Documents directory. So, for the next part, you need the Developer Tools. Type the following:
/Developer/Tools/./SetFile -a V Microsoft User DataThis sets the Invisibility bit to on the alias to 1, so it won't show up in the Finder. That way, I don't have to even look it. As you might guess, I've had a hard time with Office products. To bring it back, run the above, but with a lower-case v instead of an upper-case one. See the man SetFile page for details.

