all I can say is, I had that folder before the xmas patch, but just in one of my 2 comps
I had to uninstall the game in both of them in order to DL the last update (timeout issues and whatnot), and I noticed that the game version I had was shaiya: guidance of Goddess (ep2 or 3?? can't remember), and it has been patched up since then, while in my newest comp it was shaiya: relic of mystra (ep5).
the former had no such folder, while the latter had, so I would guess that your original version of the game makes a difference here.
also bear in mind ignite-installed shaiya vs standalone shaiya
but, just as a curiosity, after I reinstalled both comps through ignite, there's no such folder in neither of them.
and yep, like someone said, an hackshield that can be deleted, wow, will do wonders to prevent hacks