Ok, well according to my XP-pro, the folder c:\recycle contains TWO sub-directories
S-1-5-~1 and S-1-5-~2 however, both are hidden, system folders and cannot be seen, even if the necessary options are taken to see them.
Super-hidden in other words. However, I am able to see them with a very old Dos program.
The actual long folder name is a very long string of numbers, and the content is desktop.ini and INFO2. So this is actually almost as described in the Microsoft link I gave previously, but clearly, MS does not want anybody to know about this !!!
Desktop.ini contains
[.ShellClassInfo]
CLSID={645FF040-5081-101B-9F08-00AA002F954E}
which is in turn a reference to the ClassId in the registry at HKEY_CLASSES_ROOT\CLSID (dont you just love MS stupid ways of doing things)
So this link
http://www.kellys-korner-xp.com/xp_tweaks.htm at item 64 right-hand column, lets you download a file restorecyclebin.reg which saved anywhere on your PC, then double-clicked, will write the values I find in my registry. This might solve your problem. With nothing to lose, you could try it.
But if the problem is a corruption in file INFO2 (as the MS link says), then the option is there to delete INFO2 just as described in that link. Notice they do say the file can be INFO or INFO2, and they raise the command del INF* which would delete either. It seems in XP you probably have to stop explorer before a delete will be allowed. Press ctrl-alt-del to raise taskmanager, and kill explorer.exe.
An even simpler method is just boot off something else, like a bootable Linux CD and just delete C:\recycler from Linux.