I have got the same exact problem !
http://members.iinet.net.au/~malith/images/20050107/folderprob.PNG
Adobe wants Documents folder to copy Adobe PDF folder.
Hopefully we'll find a cure.
Edit:
I have also tried booting using Windows PE 2003 and then trying to delete the folder using WinInternals application but still no go.
Edit:
C:\Visual Studio\Backup Files>dir
Volume in drive C has no label.
Volume Serial Number is B42E-2805
Directory of C:\Visual Studio\Backup Files
07/01/2005 08:46 <DIR> .
07/01/2005 08:46 <DIR> ..
02/01/2005 08:38 <DIR> WM9 Bitrate Calculator
0 File(s) 0 bytes
3 Dir(s) 15,063,580,672 bytes free
C:\Visual Studio\Backup Files>cd "WM9 Bitrate Calculator "
The system cannot find the path specified.
C:\Visual Studio\Backup Files>
How strange is that.