Today I deleted a collection of old flagged "corrupted files" folder after
checking these files at all those lovely websites like VirusTotal etc..
Since this was on the desktop before deletion, a hole in the icon set was
present and I rearranged them by type. Suddenly, a folder pops up in the
place of the old "corrupted file" folder called [Application Data]. This is
the one you find in Windows and also in Profiles of User under Windows with
multiple users. Why would a copy of this folder show up on the desktop?

None of these files that were deleted would have an impact on this except
possibly; awswax.ocx which is replaceable.

I know that if I import a file that is encrypted and the security feature in
MSIEv.6 is enabled [do not DL encrypted files to the HD] the file will popup
on the desktop. Financial and bank type stuff.

What about a "High" security level on the local intranet zone?