Thanks. I also looked into "unlocker' I am hesitant to try those because this seems to affect not just one folder/file/ program. I mean something must have changed on the computer for this to suddenly start. I also noticed that a windows security has been trying to download successfully and fail, since last night. I have not had this issue before either. I ran superanti spyware scanner last night just in case. I ran the malware scanner on the empty folder too. all came up clean.
FYI: I have avast free edition, malwarebytes, superanitspyware I also use secunia psi. Windows firewall.