If it really was a /lib/modules folder, then it contained (surprise) the modules that that kernel loads. So yes, it would be important, but perhaps it wouldn't be immediately noticeable because you'd have the modules you needed already loaded in memory (assuming you're currently running that kernel).
You can try to reinstall that kernel, or switch to a different kernel version. Perhaps it's about time to update anyway, since 2.6.29 is now out.