I was wondering if anybody knows whether it is safe to manually delete or move files found in LETTER:\$RECYCLE.BIN folders?
If a file is placed into the recycle bin and then I manually move it from the $RECYCLE.BIN folder does Windows notice that and update the recycle bin interface automatically?
To summarize what I've understood from the links kindly provided by DarkGhostHunter. The recycle bin's metadata is stored within the $RECYCLE.BIN/{user-guid}/ folder within a file entitled INFO or INFO2.
So to manipulate the content of the recycle bin one can do whatever you like with the files and then adjust the metadata manually to account for that. Alternatively if all you wanted to do was delete the contents you are safe to just delete the {user-guid} folders (or even the whole $RECYCLE.BIN folder) because the metadata is contained within it.