For Outlook 2007, the RSS folder is created automatically as part of Outlook's functionality. Removing it requires using the Group Policy Object editor. It's not too difficult, but making mistakes in the GPO Editor can result in Windows not operating properly.
Here's a pretty good guide to using the GPO editor to hide the RSS folder. Note that it will not completely remove it, just hide it on that particular computer.
http://blog.gnu-designs.com/solved-h...m-outlook-2007
-SW