Well you have to be careful about that. What you should do is check the original cab installation file for that app to see if it has a setup.dll in it with that name. If so, yes you can probably delete it from the program folder. But some apps might actually use a dll called setup.dll (with no relation to the type of setup.dll we're talking about here) and therefore deleting it might cause problems for the app.
Best thing would be to just rename or move the dll first and make sure the app still works fine--if so then it's probably safe to delete the dll.
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