In Windows 2000 Explorer, you can customize a folder view, using the Customize This Folder option, on the View menu. This creates a sub-folder named Folder Settings, with Hidden, System, and Read-Only attributes, causing any file system to issue an access denied, when you attempt to delete the customized folder.
The solution is to perform either of the following, prior to deleting the folder:
Click the Customize This Folder option, on the View menu, click Next and then click Remove Customizations
Remove the System and Read-Only attributes from the Folder Settings sub-folder, using ATTRIB command, or the sub-folders Properties.