I'm afraid I dont know what you are talking about. If your b2evolution install was somehow compromised and you want help, youre going to need to supply more info that what you have.

0. b2evolution version
1. what happend, what was done
2. what files were where
3. what other apps (if any are you using)
4. permissions for ALL the directories
5. any data loss, etc..

What I really want to know is if locales directory is really needed or can I just delete the whole thing. What is it for?

Locales are for translating the stock bits of b2evolution. By that I mean any text that shows up in the 'custom' skin other than posts, though not all languages are completely translated.

Do you need them? Probably not, but if you blog in something other than english you'll probably want to keep YOUR language.

Will deleting them 'fix' a hacked server? Yeah sure - and Santa Claus will bring you a new Easter Bunny...

Seems to me like a new password and a comprehensive review (or complete obliteration) of your server space is in order, though I've no real clue about security. Security to me means keeping a handgun near my keyboard so's I can fire off a few rounds at my monitor when I don't like what it tells me...

Thanks and I know deleting them won't fix or prevent another hack but that is one less place for it to be. I think the hacker picked those directories simply because they were so buried. I think he/she figured it would go unnoticed for a long time since it was buried so deep in that subdirectory. =)

Well it didn't =) They forgot to take into account what sending 10k messages in about 10 minutes would cause on the server and it sent up a red flag. LOL.

Thanks,
Heidi