I will try my best to answer your questions:
1. I am a complete novice at networking and do not understand the terms Randy talks of. Therefore, I don't think I am the right person to ask advice from regarding this question.
2. The Recycler folder is usually the folder which contains copy of the files deleted from the hard drive. Some copies may still remain even if the Recycle Bin is emptied. This information might come in handy if you are to check the traces of the files deleted on the system and the user who authorized the action.
3. No, there is no point to uninstall Internet Explorer 7 if you are using it to browse the internet. However, it does seem sensible to install Firefox or any other browser of your choice if you prefer it over Internet Explorer or just want better security.
I will review your problem and get back to you as soon as possible. Hope that helps.
-- Goku