"My Documents" Folder INSIDE "Documents" Folder..

I have a client who just migrated from a Windows XP computer to a  new computer with Windows 7.  He told me that he had backed up all of his data onto an external hard drive.  After setting up the new computer, I copied his  data to the new computer.  I did this by opening each directory, i.e. "music", "photos", "favorites", "My documents", copying the contents, and pasting into the new directory.

Apparently, he had a "my documents" folder inside the "my documents" directory on the old computer.  They were identical... in size and content.  He is trying to get rid of the "my documents" folder that is INSIDE the "DOCUMENTS" directory in Windows 7.  If he deletes a document inside the "my documents" folder, the same document disappears from the "documents" directory in Windows 7.

Any ideas  what might be causing this?  I suggested that he copy ALL documents and folders in the DOCUMENTS directory to an external hard drive, leaving the DOCUMENTS directory empty.  Then to copy and paste the documents he wants on his computer, leaving the copies on the external drive.  I have not heard what the results of this action are at this point, so I don't know if this solved the problem.  Whether is did or it didn't, isn't what is intriguing me...  I want to figure out what is causing this!

Thanks,