The ATI drivers require it to install, I don't know about nvidia. As to explain what it is this is an excerpt from the offcial Website: The .NET Framework is Microsoft's managed code programming model for building applications that have visually stunning user experiences, seamless and secure communication, and the ability to model a range of business processes. In addition to the .NET Framework 2.0, it includes Windows Presentation Foundation (WPF), Windows Workflow Foundation (WF), Windows Communication Foundation (WCF), and Windows CardSpace.
Edit/Post Script: It is also probably required to install nvidias drivers, so I wouldn't bother uninstalling it until you know for sure. And it's less than half a gig, shouldn't matter even if it isn't required, so I'd just leave it, unless you have a small hard drive.
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