Found.000 is a folder that is created during a chkdsk (check disk) after a system crash. In simple terms, the folder contains files that were "lost" at the time of the crash which chkdsk recovered but doesn't know what folder they were originally in. Here's a link to a more techie answer...it's about 3/4 down the page:
http://www.microsoft.com/windows2000...f_tts_ffgh.htm
http://www.computing.net/windows2000...rum/20764.html