If you receive:
Cannot delete file name: The file or directory is corrupt and unreadable.
when trying to delete a file on an NTFS partition, check the System Event Log. If it contains:
Windows NT 4.0
Description: The file system structure on disk is corrupt and unreadable.
Please run the chkdsk utility on the device with label "Volume_name"
Description: The file system structure on disk is corrupt and unusable.
Please run the chkdsk utility on the volume "Drive_letter:"
When you run CHKDSK, it may make repairs, but you still can't delete the file.
It is not an issue with deleting reserved names.
You may have a corrupt MFT (Master File Table).
The names stored in the directory index record and the associated FRS (File Record Segment) are case sensitive, and the case may not match. Unfortuneatly, CHKDSK fails to check and fix this condition.
If you have tried everything, your only solution is to:
1. Backup the entire partition, exluding the corrupted files. If you have an alternate install, do it from that instance.
2. Reformat the partition. If you only have one, with NT you can install a temporary instance, having setup delete and recreate.