Right mouse click then select Explore. You should get another window with the directory selected. You should then be able to delete that directory. Close the window and refresh the listing. The virtual directory should have gone.<BR><BR>Sorry if I wasnt very clear.
Try removing the project from interdev. Right mouse click on the project and select Remove Project. This should remove all the associated files and the virtual directory. Refresh the view in MMS.<BR> Thats all I can think of.