I finally booted up in dos and deleted it that way. It screwed with about 14 files before i got rid of it.
I also found a rundll32.exe file which was requesting an outgoing connection about every five seconds . My firewall was blocking it. Had to do the same thing...boot up in dos and delete it. Yikes!
Norton detected some kind of IRC "back door" virus yestereday...it got rid of it.
Gonna have a talk with the kids tomorrow. No more chat on this computer!