|I was about to suggest System Restore but it probably won't touch desktop folders. I was probably being over cautious about other suggestions because I didn't want to risk you somehow deleting the original one it the same time.|
There are various free programs around such as "Move on boot", or you could use a Live Linux CD.
It is probably obstinate because it is a system folder so another possibility is using the command prompt to direct to the desktop (via full path) then use attrib -r -s -h
It should delete then.
Always pop back and let us know the outcome - thanks