Well, it's odd that the FTP server is displaying that AND letting users view the contents. That folder is where System Restore places the restore point data. I don't think there's anything "private" that could be gleaned from it, but certainly you don't want it seen.
However, you probably shouldn't be sharing the entire contents of a partition.
You may need to uncheck the "hide protected operating system files" option. Even though you're showing hidden files, there's a further layer of protection by hiding files that are absolutely needed for the OS. Then you should be able to see it in Explorer.
Serv-u shouldn't be able to display that folder at all no matter what I think, and certainly shouldn't be showing the contents. Normally, NOBODY is able to see the contents, including administrators. Its permissions should be set to only allow the SYSTEM to use it.
If you disable System Restore, then you can delete the folder entirely. However you of course don't have the protection of SR if you desire it. Either way, once you can see it in Explorer, right click and bring up the security options. If you don't see any security tab on the properties page, then you need to uncheck the "use simple file sharing" in folder options. Simple file sharing makes all shared folders viewable by anyone, removing most of the security checks, including alot of local security. Normally it's okay to have it enabled. It might even be that disabling simple sharing will prevent Serv-u from displaying the folder.
After you can see the Security tab, you can use that to set yourself as allowed all rights to the folder. Then you can see the contents, and delete it if you have disabled System Restore. You may have to disabled the SR service as well as simply turning it off on each drive.
This has to be done for each drive's System Volume Information folder, it's not global since they're all separate folders. If you add yourself to the permissions, you can also re-enable simple file sharing if you want. If that stops Serv-u from showing the folders, you might want to leave it off, and talk to the makers of Serv-u to see whether that's something that can be changed. No application should be listing folders that the OS won't even show to a local admin.
But really, the best solution is to have an "ftp" folder in the root, and use that as the root for FTP users, not the root of each drive.