to save you some hassle...this is what i did, and none of them worked.
1) booted into safe mode, administrator account....the file is NOT read-only...it has no attributes at all. (removed them)...didn't work
2) booted into safe mode, my own account (with admin level access)...no go
3) tried moving the file to another drive via both command line and explorer, no go...tried deleting too, no go...
4) booted into safe mode, COMMAND PROMPT only...tried to delete it, no go.
5) tried deleting it from a lower-order folder using the del /s command...no go.
6) boot disk won't work on NTFS partitions...if you have a util from sysinternals (winternals) you can access NTFS partitions from win9x/ME, but i'm not sure if that would work...u'll need the full version (costs cash) too...the shareware only allows you to read NTFS partitions.
i mean, what else could you try without formatting or repartitioning or smashing the blasted thing against bill gate's face???
give up...MAKE THE FOLDER..you know windows sucks.
EDIT:
7) i aborted EVERY process running (I think every one?) except a command window for attempting to delete the file...so nothing could've been using but the core of windows itself...still couldn't delete teh goddamn thing.