If you’re using Windows XP you might have observed that there’s a file with the name Desktop.ini in some of your folders. You’re sure that you didn’t create such a file but then where did it come from? Desktop.ini is a Windows XP system file that stores information about customized folders. If you have customized the display of a folder in any way, Windows saves those settings in a desktop.ini file. Changes may be for instance changing icon, manner of display, etc.
If you set the Explorer to display hidden/system files then Desktop.ini becomes visible. You can hide it by doing the following:
Open My Computer and go to Tools> Folder Options
Now, Click on the View tab.
Check off the radio button next to “Do not show hidden files and folders”.
Put a check in the box next to “Hide protected operating system files (recommended)”.
That’s it once you have made these changes, Desktop.ini should be out of sight.