No it wasn't it was just a bug in Nero 7 which did this funny thing it turned out.So to test this I deleted the file again. Fired up Nero 7 pop came the UserImages.bmp in my My Documents folder.Nothing to be scared of actually.
Some workaround in the registry and I was able to redirect this file to be created in the place where it won't bother me.What I did was created a new folder inside c:\Program Files\ Nero\Nero7 and named it temp. And then I opened regedit went to HKEY_CURRENT_USER\Software\ahead\Nero - Burning ROM\Settings\WorkingDir
and changed the registry entry for the entry above from to:
C:\Program Files\Nero\Nero 7\Temp
now the file is created there instead of My Documents Folder.