>Hi Cetin,
>
>Thanks for the input. I was confused with the fact WHY it wouldn't delete.
>I assume you solution works just fine, but I need to know who is setting and holding this read-only lock.
>
>Thanks to the TaskInfo tool, I found that there where several dozen filehandles attached to the directory. I found that my zip DLL created them, but never released them.
>
>On every ZipThis function call a new handle emerged, but never got released.
>So with 20 or so handles Windows won't deleted as long as the application is still runnning.
>
>That's my problem and my solution is contacting the DLL creator...
>
>Thanks again

OS is setting the readonly (It is XP, right ?). Just try to create a new directory drag&dropping an RW directory from within explorer. Then check newly created folder's properties.
Cetin