Get yourself a windows 98 boot disc (
www.bootdisk.com), and boot from it with cd rom support.
Get to a command prompt.
Go to the root of C:
cd\
then change directory:
cd windows
then
cd system (or the folder where it resides)
then change the attributes of the file so you can delete it manually:
attrib <name of file> -s -h -r -a
delete the file:
del <name of file>
If it wont delete try changing the name or extension type:
ren <file.
> file.all (without the use of < or > and the
are because idon't know the file extension)
remove the floppy and reboot.
Make sure the file is not needed first though!!