In the folders where you desktop ini is, is that folder or anything in that folder on the desktop? On any of the users on your machine, not just u. Do you have xp home or Xp pro? I have seen windows hide the desktop.ini file and some time it will not, depending on that folders pref.

ALL THOUGH from the google searches I have done, Many people think that these two folders are a virus of some kind and that they work together because of the vb code and java code in the folder.htt. how ever I can olmost be sure that these files are system files and they should not be deleted even if you try they will come back. Like I said desktop.ini is for shortcuts or copy's to the desktop weather you have that short cut or not. Also I found a tidbit on google a search talking about folder.htt that is has somthing to do with the way that certain folder looks and you can even change the way the folder looks by hacking that file. I tthink if you do some searching on MS web site and google you may find your anwser more exactly.