Recently, I upgraded my MacBook Pro to the latest incremental update of Lion which is version 10.7.2. The upgrade went fine but I noticed that upon logging-in, the Guest user account is now visible/appearing from my login screen every time I boot up my Mac. I thought this was caused by iCloud and Find My Mac feature of OSX Lion but it’s not!
Hiding back the Guest user can be achieved by Checking a single checkbox found under Security & Privacy of your Mac’s System Preferences. Restart. Voila! Guest User account is now gone on my login screen window!
The Fix:
1. Go to System Preferences
2. Under Personal section, click the Security & Privacy icon
3. Click the ‘lock’ icon to make changes.
4. Under General tab, just check the option box titled “Disabling restarting to Safari when screen is locked“
5. Click the lock key again to secure your preferences.
6. Restart your machine
7. No Guest User will be displayed on the Login Screen Window
Screenshot:

Security & Privacy Window
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Thank you for this… it was driving me nuts
Nice One!
Seems like Lion is Apple’s version of Vista. Let’s hope for a better system SOON!