OS X :: Setting Up User Accounts With Snow Leopard On New Mac Book Pro?

As an administrator (without FileVault protection) on SnowLeopard, I created a standard user account (test user1) with FileVault protection. I just want to get familiar with it before creating real accounts. But as an administrtor I can't look at files created by test user1. I get a message that I don't have permission.
Do I need FileVault on for the administrator in order to do this?

If not, as an administrtor, why can't I see what's on other user is doing?

Is there a way as an administrator I can see what's files are downloaded, created, websites visited, etc? I'm aware of creating a user account with Parental controls, but would that give me the ability to see what's in the folder?