Can't hurt to ask. Did you look in your Recycle Bin? The folder will be there if you did nothing else but delete that folder.
I completely removed it thinking it wasn't important :P
I just remembered I had a backup from about a month ago and tried restoring the public file from there, but it did not help. I still am having the same problems.
I don't know if this is normal or not, but when i run set in cmd.exe PUBLIC is not in there at all.
and whenever I try to do a system restore from a restore point before I deleted the file I get an error on the restore, and it doesn't finish. This did not happen when I restored the public file from my backup though. Still though, I am having all the problems, I'm thinking I need to just completely reinstall windows over something so small :P