XeroX Folder?????
Try deleting it from command line first, sometimes that works. Have you tried rebooting and seeing if a process uses that folder on startup, if so, you only need to find out which program uses that folder on startup, disable it from startup in msconfig, reboot and then del that folder and the offending program.
okay before you go off and delete a folder that you are unsure of what it does you should take some steps. i mean, what if it is being used by a legitament piece of hardware or something?
some things that you should look for are:
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is anyone conected to your computer? netstat -an will be of help here, however if you have a kernal rotkit installed, you're pretty much screwed, as you will not be able to trust any info that is returned.
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disconnect your ethernet cable from the computer. this will prevent youi from being online and from other accessing it.
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see if you can pull up a process list (the windows equivlent of a ps -aux). maybe that will provide some clues..
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portscan your system and look for any trojans etc (just your basic security sweep).
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check all your hardware docs and see if you can find some mention of this.
hopefully you'll find that it was nothing. however, if you do think that you have had a breach and cannot confirm it, be paranoid and flatten/rebuild the box. then apply all the updates and patches,etc along with a paranoid firewall config.
and while your at it, get that box away from windows and put linux on it ;)
gl