I found this answer written by a user named "WhitPhil" on the computing.net forums [Source]. It looks like it applies to Windows Me, but it might work in XP with a few changes. Below is my adjusted version:
The DC prefix is what Windows uses for files in the bin. If you start to see these from Explorer, it indicates a corrupted bin.
Boot to the Windows XP setup disc and enter the recovery console
Enter the Administrator password when prompted.
* If you are using Home Edition, it will probably be blank unless you've changed it.
* If you are using Professional, it will be the password you provided during setup unless you have changed it since then.
* If it's an OEM installation (it was installed when you got the computer and you haven't re-installed or done a clean upgrade), then it will probably be blank, but if not, call your computer's manufacturer.
When you get to the prompt, type `rmdir /s C:\RECYCLER` followed by ENTER
After confirming that the folder name is correct, respond with Y.
Reboot normally to windows and a new recycle bin will be created.
Since this originally applied to Windows ME, you should probably set a System Restore point before doing this. However, this page suggests the same resolution in an XP system, but it doesn't use the boot disk. Using the boot disk will ensure you have full permission to do this and will ensure nothing is accessing the files you are trying to delete.