I'm currently trying to get out of this loop on my Vista64 bit laptop. I created the folder on my desktop, but the command prompt is saying it can't find the folder to delete.
Edits:
Gahh...I'm an idiot. I forgot the closing brace when trying to delete via the command prompt.
Ignore my previous warning about backing up.
Make sure if you try this and you get the "Explorer stopped working" loop at startup, you are familiar with safe mode WITH command prompt. You'll need these instructions:
Navigate to the correct folder with the offending folder with ChDir.
Use the RmDir command on that folder.
Edits2:
I say you need to use safe mode with command prompt because simply using safe mode doesn't change anything, nor does a system restore. You have to delete the folder to get control back.