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I see this folder under Windows 7 x64 and also Windows 8 x64. What is its purpose?

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Its not a system folder, it probably softwares, drivers downloaded by somebody, or the OEM –  Shekhar Jan 13 '13 at 1:17

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That folder seems to be a deposit for uninstallation resources and executables. you can remove the contents if you need extra space but you will cripple any software needing repair and/or uninstallation.

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