Unlocker will not do, that problem is not caused by 'some program are using the file'. Rather, i got this problem when i tried to delete an 'already deleted' file on desktop, it seems that Vista doesn't update the status of the file so it appears as it is still on your computer. I refresh the screen and it's gone. But for your case i think it's not that simple, the file name seems to contain invalid characters so Vista cannot recognize it.

Guess you have to go back to the source of the file in order to figure out what's causing the name to contain invalid characters.

You give up on the genuine Vista and use XP instead? How waste...XP might get this problem as well so it doesn't matter which OS you use.

By the way linksinstreet thanks for the tips for alternative way of deleting a file, haha.

No, there is, my OEM Vista comes with integrated SP1.