I'm getting the same thing. I made a file on my desktop to put in some things while I was cleaning it up. Then when I was done with it, I deleted it. Except it comes back from the dead. I mentioned it to somone I was chatting to about another Vista problem, from Microsfot. The Microsoft guys said he'd never heard of it. Now the difference I have, is while the folder has nothing but another blank folder in it, it won't let me delete it half the time, it says that it is being used by another program. Nothing seems to get rid of this file. It had also redirected scans to itself at one time, despite me changing settings in the program I was using. This has been a neverending fight for me.

I'm glad ther I'm not the only one, but I see a lot more questions and no solutions and that is troublesome.
I've done the hidden Admin thing (got the same response- couldn't delete it), the safe mode thing, short of reinstalling Vista (which I can't, this computer came with it installed and no disk was given to me) I've done all the suggestions I could find online. Any help would be great.