The significance of the hidden $RECYCLE.BIN folder of drives in Vista

The significance of the hidden $RECYCLE.BIN folder of drives in Vista I notice this directory in both my internal and external HDs that I use in Vista. Is this linked to the Recycle Bin functionality of windows? Will windows still operate properly if I deleted it?
Asked by: Guest \| Views: 243

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Guest [Entry]

"If you configure a drive not to use the recycle bin you can easily delete the folder and windows will still function properly:

Right click on the Recycle Bin and select Properties. Highlight the drive you want rid of the recycler folder and clear the Box Do not move files into the Recycle Bin. Remove files immediately when deleted and click Apply.

Note: you will no longer be able to restore deleted files on this drive.

To prevent Windows from creating the hidden Recycle Bin folder again, see my answer in this thread:

How do I get Windows 7 to NOT use the recycling Bin on a removable drive?"