How do I hide files from "All My Files" in Mac OS X v10.7 (Lion)

It should probably come as no surprise that their are certain files I don't want to appear in "All My Files" EVER. How do I get Mac OS X v10.7 (Lion) to ignore specific folders for its "All My Files" feature?

I figured it out. Go the System Preferences -> Spotlight -> Privacy.

Drag in the folders you don't want indexed. They get removed from the "All My Files" feature.

EDIT: This does not appear to work in Yosemite (10.10) or Mavericks (10.9). At the time the question was asked, Mountain Lion (10.8) was the current operating system at the time.

This would work, but is a little bit of overkill.

If you Ctrl-Click on "All My Files" in the Finder window, you can edit the search >that "All My Files" does without changing your Spotlight preferences.