Files on the network

I have a user running Windows 98 and the first time that she logged into the system, the following files were created in her user folder on the network: Application Data, Cookie, Desktop, History, Nethood, Recent. If I am not mistaken, these files should have been created on the local hard drive. Each time she logs into the system and goes to the Internet for instance her web history is being saved on the network.

My question is, how can I go about fixing it so that these files and folders don't appear on the server. And also that I don't cause problems for her on her local machine?