Looks pretty strange...have you looked at the attributes on the folders to see if there is a read-only flag? Do you have another install of Windows that you can boot into with this drive as secondary and try to remove that way? Using the Recovery Console from the repair option in XP would also be a thing to try...possibly you could remove it from there. Atleast you just did the install...why not re-format quick NTFS and reinstall? Good luck!