The domain user does have permission to delete the files. And no i didn't try using the ActiveX FileSystem Object. Do i have to provide the username and password while...

one note:

i am already using xp_cmdshell to delete some local files.

Maybe this is an issue with del not being an EXE / batch file ? if so is there any...

There seems to be no where around it, beside  i strongly advise you to use the SQLEM for editing the DTS.

Using the 2005 module has wasted lots of my time...