Yup, run an anti-virus/spyware scan.
I had a similar issue on my old PC, something was downloading endless copies of itself into a hidden folder and naming itself after every conceivable type of pornography. My HD space was constantly decreasing, and ths was quite an issue for my 20GB drive! Naturally I got this from using file-sharing software. Oh, how young I was :p
Anyhoo, it wasn't until I ran AVG and watched every filepath it scanned until I could find the hidden folder. From then it was a simple deletion.
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