Delete the user folder - is this a good idea....

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I'm trying to clear up some corrupted IE7 cache files. I've read this
article which seems to be the answer:
http://www.mvps.org/winhelp2002/delcache.htm and in particular this passage:
Log on as Administrator and delete the desired <username> folder(s) and
reboot. The article doesn't say what impact this might have.

But if I delete my user folder from another admin acct, what will that blow
away besides the cache? My Documents - gone, My Favorites - gone, right? If
so, what crumby advice! The other question is let's say, I preserve the
stuff I want, when that user tries to log, will XP rebuild that folder with
all the elements needed to log on? I'm just afraid if I zap the folder, XP
won't be able to log me back in - or is the actual user datafile kept
elsewhere and the folder is a result of that being there?

Thanks.
.