C:\Recycled = Recycle Bin. Did you upgrade from Win98 or older OS?
Sounds like you have an old Recycle Bin location. On my home system,
which I did upgrade from Win98 SE, has both Recycled & Recycler.
When is the last time you ran Disk Cleanup in the System Tools folder?
Just remember NOT to clean compressed files.
"The actual location of the Recycle Bin varies depending on the operating
system and filesystem. On the older FAT filesystems (typically Windows 98
and prior), it is located in Drive:\RECYCLED. In the NTFS filesystem
(Windows 2000, XP, NT) it can be found in Drive:\RECYCLER, with the
exception of Windows Vista which stores it in the Drive:\$Recycle.Bin
folder."
From:
http://en.wikipedia.org/wiki/Recycle_Bin_(Windows)
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Master Blaster
Computer System Specialist
IT Technician