Problem is a folder is created with the same name within that folder.Unable to delete the folder.Scanned with Trend Micro.Not detected any virus.I think it is a virus Activity.How to rectify this problem.

Sounds like a virus to me. You could try running the Housecall online scan.
TrendSecure : Total Security Protection
It's a really good antivirus/antispyware scan.

You may also look here, where I explained what to use to scan your computer, as suggested by me. The McAfee Site Advisor is a add on to your internet browser.

Does that folder appear as "folder.exe"?