If all of your files, settings, and other stuff have been restored successfully, you can use Disk Cleanup to remove these folders / files. Just make sure everything you wanted from your old XP installation is safely intact / restored within your new Win7 installation before you run the tool.
Outlook Express won't import to Win7 because it now uses Windows Mail (or Live Mail - something like that ...) I had this issue when I upgraded my wife's computer way-back-when to the Win7 RC. At that time, I didn't know you had to use the Windows Easy Transfer program ... (failure on my part to do my homework and read up on the process). I used the old Transfer Files and Settings Wizard in XP. It wasn't too big of a deal, I just installed Windows XP in a virtual machine using VirtualPC running in Win7, and then "restored" the files and settings to the virtual XP install, then installed Easy Transfer to the virtual machine, and brought it all into Win7.
To backup Outlook Express, I had to download and install Windows Mail in XP (in the virtual machine), then import mail from Outlook Express to Windows Mail and then I just copied the appropriate folders from the virtual machine to the real one. That'll teach me to jump the gun without reading up on what I'm doing, I guess.
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