In windows 7 the Windows.old folder is created when you do a fresh installation without formatting to remove the old Windows, and instead it is bundled in the .old folder. So essentially what you did was a clean installation but without formatting the HDD.. You could recover personal files from the Windows.old folder and next delete it... but it is not what's slowing down the computer. The likely cause is Windows 7 may need driver updates.
Another possibility is that the HDD/partition may have needed formatting to rebuild partition tables and file system, and installing Windows without the propper HDD maintenance can make it run with issues.. I'm guessing the HDD already had issues you wanted to solve with a fresh installation of Windows. If so, you've better format and install Windows again, the correct way.