in use files / nonexistent folders

First, dis-connect form your modem or network.

Then, boot from a DOS floppy.
Use the DOS commands to browse your hard disk and delete the files and folders.

Once you have the hacker files cleared off, boot into Windows, and install a firewall.

Once the firewall software is installed, you can re-connect to your modem / network, and see what programs try to access the internet.
Block any program that you do not know what it is.
Then, review the list of programs accessing the internet,and disable any left by the hacker.

Chas

How did you find these files?

What is the location of the Folder? Have you been using KaZaa or Grockster? These programs set up a shared folder so others can access your downloaded files. Since the Programs run all the time that would explain whythey're in use.

You might be able to delete them in safe mode, if not I agree with doing it from DOS. But if the files have hidden or read only attributes enabled you'll need to disable those first. Use the "a" switch when trying to view the folders. Also if they're not saved using the DOS convention 8 characters folloed by 3 character extension (filename.xxx) then it may be hard to find them. You'd have to use the "~" sign. An example would be the "Program Files" folder would be "progra~1" folder in DOS.