Hi,
The Network service and local service folder are system folders which are hidden.
The Network Service folder is and hidden folder in Windows XP Documents and Settings and it is a temporary storage folder for the network services.
For more information on the local service folder check the link provided below.
http://msdn.microsoft.com/en-us/library/ms684188
Note:
Serious problems might occur if you modify the registry incorrectly. Therefore, make sure that you follow these steps carefully. For added protection, back up the registry before you modify it. Then, you can restore the registry if a problem occurs. For more information about how to back up and restore the registry, click the following article number to view the article in the Microsoft Knowledge Base:
How to back up and restore the registry in Windows