Download Program Files Folder Conflict?

As a result of researching a Windows Update problem I discovered the following information.
It seems if Windows Explorer shows 'damaged' files in the 'download program files folder' (W2K) it is a symptom of some kind of conflict. This is further confirmed by highlighting 'Dowload Program Files' directory & right clicking for properties. It is supposed to show in'contents' x amount of files & (this is important) '0 Folders'. Mine shows '1 Folder' which according to this news item confirms a conflict.
QUESTION: Does anyone know how to resolve this? I researched MS Data Base to no avail. The news items resolution only applies to W95 & 98.
Please help as I believe this may be causing my Windows Update problem!
Thank you.

 

That folder holds ActiveX controls that, depending on your asigned permissions, have been downloaded by your browser. You can remove whatever ActiveX controls that are there - either by using add/remove programs in control panel, for any that appear in that list - or by simply right-clicking the file and deleting it .