http://www.sevenforums.com/general-discussion/89677-cannot-delete-0-byte-file-desktop-2.html
Bunch of solutions for this issue on that page.
the main one that worked for me was
navigating to the directory in an elevated command prompt
EXAMPLE
CD C:\users\(username)\downloads
then typing dir /x to find the 'short' file name of the corrupted file Example: Fairyt~2 was mine
then typing del (shortname)
EXAMPLE
The trick is to delete the file using its short name. To discover the short name,
open a command line window, and type DIR /X. This will show you two names for the
zero byte file--the normal one and a "short name" that consists of the first 6
letters of the file name, a tilde (~), and a number. Now use DEL with the short
name.