That folder is typically shared to allow other PC's to download your printer's drivers. Typically it requires a printer to be shared I believe, but honestly I don't use printers often so I am not 100%
Open the run dialogue box and type
Cscript%WINDIR%\system32\Printing_Admin_Scripts\en-US\prncnfg.vbs -t -p "<printername>" -shared"
where <printername> is the name of the printers. This will ensure that the printers are not shared.
edit: that command if for Server 2008 so it is likely that won't work.
You can also open the Printers and Faxes
window, click File
then Server Properties
. In that window you can relocate the folder, and there may be an option to remove it totally, unfortunately my network administrator has me locked out so I can't tell you for sure.