Windows 7: What is \Windows\Temp?
Solution 1:
I used to know what Windows puts there, but I can't remember it right now. I do remember that it's generally safe to delete the contents of this folder immediately after a reboot.
Solution 2:
Installation files are usually extracted into the temp folder if they are packed into a single file. Internet browsers will normally save files to this folder if you select "Open" before downloading them. Some other programs may use it for caching data that is only needed temporarily.
Windows Explorer also uses this folder to store the contents of .zip files if you open them directly, but they should be deleted as soon as you close the archive.
It normally is safe to delete the contents of this folder. (Windows will ask to do it automatically when there is not much space left on the disk.)
Solution 3:
You can also use the "Disk Cleanup" tool included with Windows to clear out your temp folder.
I find this works better than deleting the files manually, as it avoids the dreaded "could not delete file X: the file is in use" message you often get when deleting the Windows temp folder.
Solution 4:
Windows/Temp is (appropriately) Windows' Temporary files folder. It holds stuff that programs think won't be needed after a while. It's generally safe to empty this folder out, though it's a better idea to use CCleaner to clean this folder because it removes only old files, leaving the new ones that may still be in use behind.
From your screenshot, your computer could definitely use a reinstall if you have the time.