I didn't realize you were talking about the xerox folder. That is a folder always in use by Windows XP's winlogon.exe component. It's there on a clean install of windows. Using Process Explorer, you can close the handle to allow deletion, but it just comes back the next restart. One solution is to disable SFC, then delete it, but this leaves your system unprotected by SFC: http://www.annoyances.org/exec/forum/winxp/1063930641 The folder is always empty, and harmless, so I'd say ignore it.