1. You may want to try deleting the entire "Incomplete" directory. If you have nothing of importance in there nor any relevant subdirectories, try these steps:
First go into the "C:\Documents and Settings\Craig\Desktop\New Folder\Debug" directory.
Then, type
rd /s Incomplete and confirm the deletion.
Again, this will delete ALL files and directories in and below Incomplete.
Based on your screenshot, provided that you had "Show All Files" checked, I don't see any subdirectories in Incomplete.
Don't forget to recreate the directory once complete for your Limewire program.
2. What about using Handle.exe from SysInternals to see if any programs still show a lock on those files?
3. What about run a ChkDsk on your C: drive. I wonder if there could also be directory corruption that needs to be fixed first? Long shot...
HTH
--Chris