Obviously, if auto-logon is enabled, anyone who can gain physical access to the PC can use the PC. That's not the question.
The question is, when I enable auto-logon for my Windows 7 box, will there be any additional security problems?
Does the setting "Users must enter a user name and password to use this computer." affect anything else? Where/how is the password stored for auto-login?
Note: This is specifically for Windows 7, as I found this little gem regarding XP:
Additionally, if you turn on automatic logon, the password is stored in the registry in plain text. The specific registry key that stores this value is remotely readable by the Authenticated Users group.
Disclaimer: This is for my home desktop PC. Not a laptop. Not work related.