Yes, I rebooted several times, both standard and safe modes. I finally managed to delete the file and folder. It appears to be related to inherited security properties. I had to modify Flash.ocx properties, delete all users, add back myself as the owner, and set Full Control permissions. Only then was I able to delete the file. Here were the steps I had to follow: 1. Turn off simple file sharing in :tools *options :view 2. R CLICK file -CLICK properties -CLICK securities tab -CLICK advanced 3. -NOW remove all users AND re-add ONLY 1 USER admin (you) 4. un-check the inheritance box 5. Grant Full Control 6. Save then delete