Can you tell us the name of this folder?
You say the folder should not exist. Do you mean it was/is hidden, or something else?
Before you do anything else, I would back up those research and media files to some other media, eg CD or DVD. If you cannot afford to lose them, then that external disk is not a back up because it seems to be your only copy of those files.
That error message. If it was "Access denied", then this may be a simple case of "Taking Ownership". Try the advice in Microsoft's Knowledge Based article here;
If that works, re-scan with AVG and see if the access problem stops the anti-virus from reporting this folder and its contents as suspicious.
If not, did you try to delete the folder or it's contents in Safe Mode? If so, what happened when you tried?
I recently went through the process of restoring my HP Pavilion a1330n to factory settings, running XP Media Center. It was acting slow and whatnot so I thought it might be time after four/five years of use.
However, after reinstalling AVG Free I've been having multiple windows pop up throughout the day telling me AVG is finding more and more Trojan viruses in a folder that should not exist. It seems to be some sort of backup of ALL my folders, music and other media, about 100GB in all. This folder was originally located in C:\Documents and Settings. I moved it to C:\temp in hopes that that would reconfigure the subfolder settings and I'd be able to delete it. Still no luck, it says it's access denied blah blah, copyright whatever. So, I changed its advance settings so that any user has complete access/control and supposedly can do anything anyone wants to it. I still can't delete it. I also tried this in safe mode.
So AVG Free is doing a somewhat good job of getting rid of the trojans as they pop-up, others cannot be removed because I can't get into the file (when AVG is unable to move them to the virus vault). Malwarebytes doesn't find anything. Windows Defender seems unable to defend against anything superior to a cookie. SUPERAntiSpyware is able to at least SEE there are many files within this folder (unlike other programs because when right clicking the folder properties it says the folder is empty) but it doesn't usually find anything of interest when I set it to scan. I also have CCleaner set up to empty C:\temp when it runs, but it overlooks the entire folder and won't delete it. None of these programs find anything ?bad? while running in safe mode either.
I also have a 250GB external hard drive (iomega brand) where all my original files and media were stored (backed-up with iomega software) when I decided to make a blank slate. Could this be the problem? I used my external once since restore, maybe they were able to jump over? I?m really worried about my fours of college, research files and media being completely infected and useless now.
If anyone could help me I would greatly appreciate it. If any further information about my system is required I can easily give it. I?m not sure what else to describe. ;______; Please help. I?ve never had trouble cleaning my computer before this. I?m fairly hopeful that if I can delete this folder completely my troubles with end.