Don't know about XP but on Windows Vista and Server 2003 that folder contains error logs related to your printer. If there's a big spooler.xml file in it then there's some problem with your printer. Uninstall it, restart the computer and reinstall the latest drivers. You can open the splcrash.log file (should be a plain .txt file) to find out which dll caused the failure. You can delete the spooler.xml file in safe mode (repeatedly press F8 at startup).
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