I've had the same problem with a folder inside my pictures folder. I can't figure it out. I deleted the first time forever ago and when I did the comptuer crashed right after or during it. I assume that's the problem. I don't really care seeing as it's in my pics folder.
If you can't get rid of it I'd suggest setting it to hidden so at least you don't see it.
I had a similar problem at work. We had a central profile and a profile on the computer, and the two was supposed to connect and react with each other. Well it didn't work, so I couldn't delete stuff from My documents or the desktop.
Just to let you know another way that folder problems can occur.
