AHHHH! Folder of Doom! Help


I went saturday morning and got Mac OS 10.1 update CD - so I am running 10.1. For Some reason, after installing Goliath and That Arko or whatever visualizer into my system, this folder named "Desktop" appears in my HD (same folder as System, Users....). So I figured I'd delete it since I never saw it before, but the system said it need a folder by that name in there and wouldn't let me delete it! Well, I thought, forget that and I switched to OS 9 and deleted it. But I am wondering if it served a purpose and if so - what should I do? Thanks for all your help on this subject.

powerbook G3 400Mhz
192 MB RAM
Mac OS 10.1 & Mac OS 9.2.1
Was it just named "Desktop" or "Desktop Folder" ? If it was the first one, I have no clue as to why it was there - should be no problem deleting it if that was the case. If it was the second one, though, that's the OS 9 Desktop used with Classic, and it's probably not a good thing to delete that one.
there is a folder called Desktop(MacOS 9) on my OS X desktop.
I think its MacOS 9's hidden desktop folder. Its best not to delete it :p

Yeah I kept that one since I knew that was the mac OS 9 desktop - however the folder I deleted just said Desktop. dunno what it is for