This is Picassa being helpful
whether you want that help or not...
On my older Picasa install is made the folder under My Pics. There's no related settings in Options. I forget how I stopped it, and I dont have the most recent Picasa version - best do a search about how to stop it.
(I think I had to completely stop access to the folder - I see Folder Properties>Security/Permissions is set to 'deny')