Thank you Sir.

If it's a folder (BIT) then del won't get rid of it. You'll have to use rd or rmdir (same command). so, something like:
rd /s "c:\my shit\BitTorrent\BIT" did you try the link...

You can go into Dos, and try to delete the file manually using it's short name..... or trying doing it using wildcards. You could also try this tool:
http://www.purgeie.com/delinv/index.htm

If...

What's the path to the file? It's on the desktop? Also, are you able to do anything to the folder, such as set attributes (system, hidden, read-only) or can you do absolutely nothing with it?

I think on XP (I don't have a password, I just turn it on and get my desktop), but if you are set up to log on, with a user and password, after you zip the file, I think you can go to properties,...

And Beyond That, Chances are that if you get the error message (about the system administrator disabling things) attempting to change the registry probably won't work. It may let you change it, but...

follow Tks's advice about the registry with the values... but instead of going to
HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\System

try:...

Can you get to the properties of anything else? If you right click on my computer, or the network thingy, can you get it's properties window to load?

Boot Into An XP Recover Console (dos prompt like thing), and do a:
FIXMBR and probably FIXBOOT too. That Should take care of things :)