Oh sorry about the resubmission of the link, I was sifting through the replies to make sure it hadn't already been sent and I guess i missed it above. I remembered researching it myself a while back.
Pawz, here is a link that describes the purpose of the Recycler folder:
http://support.microsoft.com/default.aspx?scid=http://support.microsoft.com:80/support/kb/articles/Q171/6/94.ASP&NoWebContent=1
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