My first thought when this happened was could it possibly be the FOLDER itself, the TDSSKILLER QUARANTINE folder, but I dismissed the thought of course. Well after posting my replies to you kind people I went to the folder and MOVED the texts, it required Admin Privileges in Vista, into a new folder, THEN I shredded, and it worked.
Somehow Kaspersky's creation of a folder to hold the quarantined item, which was nothing more than an innocent update to Anti-Virus, prohibited the shred. Can you imagine that?
Anyway I did want to thank all of you who cared enough to answer, this case is now CLOSED, SOLVED.
Kaspersky's
TDSSKiller generates logs and they add up over 18 megabytes in just a couple of months, I used Spybot's Shredder which has always worked in the past and it could not shred these logs. Also I have to use admin privileges just to move the logs from place to place. Is there anything I can do to get rid of these logs? No other AV-AM does this with their logs.

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