Can I safely delete the Classic System folder when running Lion?

Considering the Classic environment was phased out versions ago, I think it would be completely safe to delete a folder belonging to the classic environment.

It's probably safe to delete it, unless you're like me. For example, I still keep a directory of pictures in the Appearance directory that I use for wallpaper. Old habits die hard. :-) You might want to check if you have anything similarly quirky.

Absolutely. Everything equivalent that Lion needs resides in the new "System" folder (and others) so you can freely delete your old System Folder.

I did a clean install of Lion and there is no "/System Folder/" there, therefore I believe that you can safely delete the folder "/System Folder/" however make sure you do not delete the "/System/" folder, otherwise you'll be left with an unbootable system.

(Of course you have a working backup, right ;-?)