user menu not changing I think that was drupal 6 where the user menu e.g.:

-Login

will turn into:

-Log out

link when the user is not logged in and when the user is logged in respectively.

I do not know how to make this behave like this in Drupal 7.

Any ideas?
Drupal 7 out of the box will recognize these if you add them to any menu. It will automatically hide/reveal them based on their context.

Create two menu items, one pointing to user/login and one to user/logout