XP will be expecting to clear certain files from the folder, it does not PURGE the entire folder each time, if there is a crash or issue with AU, then it may not get the command to clear, and if normal documents are in there, its just possible, that the user picked that folder by accident from applications (which always remember their last save folder), and continued to save files there, rather than in My Docs.
you would know by the type of files being 'hidden' in there, and by checking registry entries for Office apps, and browsers, what the save folder destinations are set to, if they all point to the same folder, then you will know its likely an accident.