I've seen this before (at least twice) here is what is happening and how to fix it:
"The fix for Windows XP not letting you delete .avi I've seen this coming up more and more all over the place so I figured I'd stick it here. Avi files (divx) can be trouble in xp. there is a fix to let xp behave much better so it's possible to move or delete large avi files. The obnoxious bug in XP that causes Explorer to read the entire contents of broken AVI files before allowing any access to them is caused by bad behavior of shmedia.dll.
To correct this misbehavior in Windows XP, remove the following registry key. HKEY_LOCAL_MACHINESOFTWARE
Backup your registry before you start playing around with it though. Hope this helps!
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by: CrazyOnePosted on 2003-01-27 at 13:09:34ID: 7825199
Don't use Explore to delete the file. It is probably doing a preview and that locks the file. Next time try this. Don't open Explorer. but
Start > Run cmd
MOVE TheDrive:\The Folder\The file TheDrive:\Recycled
The Crazy One