I disable the use of cookies on my machines and prompt to save only a select few. Depending on the version and brand browser you use its different. In IE5 go to tools\internet options\security tab and select the Internet and custom. scroll through there and you will find the cookie setting features.
The cookies allow you to aotucomplete forms and establish personalized setting for a site. deteting them will cause you to lose those personalized setting for that site.
As for temp files I have a script that runs on boot that I use to correct issues and maintain the system integrity. It clears the temp files on boot amongst other things. If the PC reboots incorrectly and windows leaves files out there, those files sometimes cause problems on windows start. This script ensures that they are cleared.
As part of a good preventive maintenance effort and a solid administration plan you should have such a script on boot.