I notice that there's frequently an aspnet_client folder under the standard IIS web folder structure. What is this used for? Is it needed?
In the .NET 1.1 days and before this folder provided ASP.NET with it's JavaScript support for the validation controls and other functionality. If you don't have a .NET 1.1 site or older running it should be safe to delete it. I would rename it first to ensure it doesn't cause any problems.
The folder is usually for storing client side Javascript, which ASP.NET uses for things like validation.
It should be safe to delete.
In addition to what others have said, it's usually created by the aspnet_regiis tool, which can be (re-)run by things like Windows Update/AddRemove Windows components/IIS. So sometimes even if you do delete it, it can come back randomly. There may be a way to stop this behaviour, but I havent found it (maybe changing the application version to .NET 2 would do it actually).
So unless you're using certain features of .NET 1.0/1.1 (validation, Smart Navigation etc) you can delete it without any problems, just don't be too surprised if it comes back!