There is a folder on a workstation that cannot be removed. When I try to delete it, move it, cut it...I get a file error saying the file does not exist...how can I get rid of this annoying file...I am running WINNT 4.0 SP4.

is the file actually deleted or is it still there ?? is it just for that one user/profile ?? if you go to the winnt\profiles\(username)\desktop subdirectory, is the file there ?? if not, can you manually recreate the file, maybe reboot, then try to delete it again ?? also, maybe run the nt disk error checker. i had a weird problem like that once and i think that the disk error checker kinda fixed it. but that is weird.

right click on the folder, choose properties, write down or remember the location. create a new shortcut for the old winfile (Name it "File Manager"), run the old file manager, goto the directory where the file is (ie. noted above). Make sure that "View/By type" include the system/hidden files (ticked).
Then try to locate and delete the dir from here. You might need to the file properties (ie. turn off the Read etc.. attributes). Hope this work for you.

open a dos box, and type chkdsk /f. Select to clean on next reboot. Watch for messages about slightly damaged files on reboot. Do this several times until all messages about damaged files no longer appear during boot up.
Worked for me.