One of the things that can help XP run smoother is to regularly get rid of temp files. Ideally you should do this on a daily basis.
Start by emptying Recycle Bin. Right click on it and select "Empty recycle bin", answer "Yes" to the question that pops up.
Clearing cookies isn't going to save you a whole lot of space but it WILL enhance your privacy by limiting the ability of websites to track you. *NOTE* Clearing cookies will also have the effect of logging you out of any site you're still logged into. Deleting cached files will usually save anywhere from 10 to 50 or more megabytes of space depending on your browser settings.
IE users:
Click on Start | Control Panel If you're looking at the "new" style control panel click "Switch To Classic View" (you can change back later if you like). Next click "Internet Options" and a properties box will appear. Click "Delete Cookies" and then Click OK. Next Click "Delete Files" make sure that "Delete All Offline Content" is checked and click OK. Finally set "Days to keep pages in history" to 7 days and click OK. It's more than likely that if you haven't needed it for a week then you're probably not going to.
Another step that a lot of people miss is to empty the Windows prefetch folder. Double click on My Computer and navigate to "C:\WINDOWS\Prefetch" Click Edit | Select All and hit the delete key. A pop up box will appear, click Yes and then you can close that window. (note: you ought to empty the recycle bin after doing this)
Firefox users:
Click Tools | Options, then in the "private data" section of the Privacy tab click "Settings". In the box that appears make sure that "Cache", "Cookies" and "Offline Website Data" are checked and set the other items however you prefer. *Note* If you use Firefox's password manager you'll probably want "Saved Passwords" UN-Checked!! When you're done, click OK on the settings box and click Ok on the Options box.
Now any time you want (I recommend daily) to clear your Cache, Cookies and offline website files, just click Tools | Clear Private Data and all of those items be gone.
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