This has nothing to do with the version. There is something else causing this.
What, exactly, are you doing?
From Windows Explorer, navigate to C:\Users.
Double click on the profile you want to copy from.
Select all then deselect the files you are not supposed to copy (in XP there were 3, in Windows 7 not sure how many or what they are).
Right click on the selected files.
Is this where you see Copy grayed out so it can't be selected?