It probably not deleteable because it's still running and so the file is locked. You'll need to kill the process itself before you can delete the file(s).

If the trojan is worth it's salt it will not let you start up the windows task manager (which you would normally use). One of the earlier worm viruses (sasser or sobig?) did this.

I like to use the SysInternals process explorer in this case http://www.sysinternals.com/ntw2k/freeware/procexp.shtml

One other way is to boot the system from a CD or floppy and delete the file(s) on your HDD. This has it's own set of complications

A lot of times a virus cannot be deleted because it is in the system restore. Some people advise turning that off if you are cleaning out a virus. Of course, you will lose all your restore points.

Goodmorphing, what a great idea. It never occurred to me to turn off System Restore. We're trying it right now........... I hope it works. Thank you!

Ever notice how many people only read or hear what they want, it seems dabe is so excited he didn't see the downfall, nor the more complicated second solution that he should logically try first before doing a solution that has ramifications.

I do hope it works out for you dabe.

The only thing I would add to #1 is to then start the computer in safe mode to do the cleaning.