You'll probably need to "Take Ownership" of that folder first before deleting it.
You can use this handy little registry hack from How-To-Geeks to do it. This saves a lot of step otherwise.
http://www.howtogeek.com/howto/windo...menu-in-vista/
It works in Windows 7 too. Once you're able to take ownership of that folder you should be able to delete it permanently.
If you just want to wipe the entire hard drive clean and start with a fresh formatted hard drive, you can do that in the System Administration section of the Control Panel and then go to Disk Management.