Java Temporary Files

I have the recent Java 6 Update 24

I thought I had heard that it is a security problem if you allow java to store temporary files.

 

 

1. Does that just mean Java based temporary files, like when you go somewhere and there ia a java program used?

 

2. When you go to Java Control Panel>General Tab>Temporary Internet Files Settings

Should the box "Keep Temporary Files on my computer" be Checked?

Or UNCHECKED?

 

What if I don't allow these files to be kept?