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The temp folder is where the programs you run save some 'temporary' information that they usually delete themselves when you close (or exit) such programs.
Sometimes, like when a program freezes and you have to End the Task or reboot your computer the program never gets the chance to erase his temporary files and they are left behind.
It is safe to erase everything you have inside the Temp folder (the one inside \Windows), just make sure you close all other programs before you do that. You might also find a couple of files that cannot be erased, leave those alone, as they are probably being used by windows. Anything else, just erase it.
If you have Windows 2000, or XP (I don't remember if 98 or ME have it) there is a program called Disk Cleanup inside "System Tools", try that one as it will also clean your Temporary Internet Files, which also take up a lot of room.
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