Cleaning the LocalService Folder

I have XP SP2.

I recently received an unusual alert from an antispyware scanner (a-squared) concerning a tracking cookie in the LocalService folder (C:\Documents and Settings\LocalService\Cookies). I'd previously been unaware of the existence of this folder, because it's a hidden systems folder.

Unticking the relevant box under 'folder options' so I could see it, I discovered that this Cookies folder contained a few other (non-tracking)cookies and an Index.dat file. I regularly use CCleaner to clear out unnecessary cookies, but it appears that CCleaner doesn't touch this LocalService folder under normal circumstances.

My question is: can I safely add this as a custom folder to be cleaned by CCleaner? Does it matter if that Index.dat file is deleted from the LocalService folder, or will Windows simply renew it, as it does with other index.dat files in more obvious places?

[As a side issue: anyone know why a website would plant a cookie (of any kind) in there? It hardly ever seems to happen - and apart from the tracking cookie there's no indication of even mildly malicious intent (one was from Paypal, one from Google, for instance).]