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Hey Burnzy,
If your unsure or you don't know exactly what your talking about please don't post. I know your trying to help but your answers are actually so far off the mark its untrue.
The cache and templates.c folders are used by Xoops. The cache folder speaks for it self and the templates folder is used by smarty.
Sometimes it is required that you actually delete these files in order to rebuild XOOPS templates.
If you where to delete these folders then no harm would be done, as all that would be required is to recreate them and give them the required permissions.