Cannot re-create project with same name after deletion.

I ran forced deletion of a project. I tried re-creating the same project with the same name but using the new MSF Agile Template (after deleting the old template) and I get this error message:

07/26/2005 05:50:26.642 | Module: ELeadServiceMediator | URL for eLead web service retrieved as "http://myappserver.mydomain.com:8080/bisserver/EleadWebService.asmx" from the registration service | Completion time: 0 seconds
07/26/2005 05:50:26.642 | Module: ELeadServiceMediator | eLead web service proxy constructed | Completion time: 0 seconds
07/26/2005 05:50:26.782 | Module: ELeadServiceMediator | Template Information for domain "myappserver.mydomain.com" retrieved from eLead web service | Completion time: 0.1406052 seconds
07/26/2005 05:50:34.797 | Module: Engine | Retrieved IAuthorizationService proxy | Completion time: 0 seconds
07/26/2005 05:50:34.828 | Module: Engine | Project creation permissions retrieved | Completion time: 0.0156228 seconds
07/26/2005 05:50:36.344 | Module: ELeadServiceMediator | Downloaded process template file from eLead web service | Completion time: 1.5154116 seconds
07/26/2005 05:50:36.453 | Module: Engine | Wrote compressed process template file | Completion time: 0.1093596 seconds
07/26/2005 05:50:39.078 | Module: Engine | Extracted process template file | Completion time: 2.6246304 seconds
07/26/2005 05:50:39.078 | Module: Engine | Thread: 4 | Starting Project Creation for project "MyProject" in domain "myappserver.mydomain.com"
07/26/2005 05:50:39.093 | Module: Engine | User information retrieved from GSS | Completion time: 0.0156228 seconds
07/26/2005 05:50:39.093 | Module: Initializer | Thread: 4 | Starting plug-in inialization
07/26/2005 05:50:39.093 | Module: CssStructureUploader | Thread: 4 | Entering Initialize in CssStructureUploader
07/26/2005 05:50:39.421 | Module: CssStructureUploader | Thread: 4 | Initialize for CssStructureUploader complete
07/26/2005 05:50:39.421 | Module: Initializer | Thread: 4 | Initialization for plugin "Microsoft.Pcw.Css" succeeded
07/26/2005 05:50:39.421 | Module: Rosetta | Thread: 4 | Entering Initialize in RosettaReportUploader
07/26/2005 05:50:39.546 | Module: Rosetta | Thread: 4 | Exiting Initialize for RosettaReportUploader
07/26/2005 05:50:39.546 | Module: Initializer | Thread: 4 | Initialization for plugin "Microsoft.Pcw.Rosetta" succeeded
07/26/2005 05:50:39.546 | Module: WSS | Thread: 4 | Entering Initialize in WssSiteCreator
07/26/2005 05:50:39.578 | Module: WSS | Thread: 4 | Exiting Initialize for WssSiteCreator
07/26/2005 05:50:39.578 | Module: Initializer | Thread: 4 | Initialization for plugin "Microsoft.Pcw.wss" succeeded
07/26/2005 05:50:39.578 | Module: GSSStructureUploader | Thread: 4 | Entering Initialize in GssStructureCreator
07/26/2005 05:50:40.390 | Module: GSSStructureUploader | Thread: 4 | Exiting Initialize for GssStructureCreator
07/26/2005 05:50:40.390 | Module: Initializer | Thread: 4 | Initialization for plugin "Microsoft.Pcw.gss" succeeded
begin Exception entry
Time: 07/26/2005 05:50:40.437
Module: Initializer
Event Description: Initialization for plugin "Microsoft.Pcw.currituck" failed with error: "Initialization Failed: Project MyProject already exists on server myappserver.mydomain.com"
Exception Type: Microsoft.VisualStudio.Currituck.Package.CurrituckPcwFatalException
Exception Message: Initialization Failed: Project MyProject already exists on server myappserver.mydomain.com
Stack Trace:
at Microsoft.VisualStudio.Currituck.Package.CurrituckPcwPlugin.PcwPluginComponentCreator.Initialize(ProjectCreationContext ctxt)
at Microsoft.VisualStudio.TeamSystem.ELead.ProjectCreationNew.PluginInitializer.InitializePlugins(MsfTemplate template, ProjectCreationContext context)
end Exception entry

07/26/2005 05:50:40.437 | Module: SccTask | Thread: 4 | User chose to create new empty folder $/MyProject
07/26/2005 05:50:40.718 | Module: Initializer | Thread: 4 | Initialization for plugin "Microsoft.Pcw.scc" succeeded
begin Exception entry
Time: 07/26/2005 05:50:40.718
Module: Engine
Event Description: Project creation failed
Exception Type: Microsoft.VisualStudio.TeamSystem.ELead.ProjectCreationNew.PluginInitializationFailedException
Exception Message: Initialization failed for plugin(s): 'Microsoft.Pcw.currituck'
Stack Trace:
at Microsoft.VisualStudio.TeamSystem.ELead.ProjectCreationNew.PluginInitializer.InitializePlugins(MsfTemplate template, ProjectCreationContext context)
at Microsoft.VisualStudio.TeamSystem.ELead.ProjectCreationNew.EngineStarter.RunEngine(Boolean isValidationRun, String templateFolder)
at Microsoft.VisualStudio.TeamSystem.ELead.ProjectCreationNew.EngineStarter.TryCreateProject(ILogHandler logHandler, String& completionMessage)
end Exception entry

07/26/2005 05:50:40.718 | Module: Engine | Thread: 4 | Attempting to delete MSF folder "C:\Documents and Settings\TFSSETUP\Local Settings\Temp\PCW_07-26-2005_05.50.34"
begin Exception entry
Time: 07/26/2005 05:50:40.968
Module: Engine
Event Description: Deleting directory "C:\Documents and Settings\TFSSETUP\Local Settings\Temp\PCW_07-26-2005_05.50.34" failed
Exception Type: System.UnauthorizedAccessException
Exception Message: Access to the path 'footer.js' is denied.
Stack Trace:
at System.IO.Directory.DeleteHelper(String fullPath, String userPath, Boolean recursive)
at System.IO.Directory.Delete(String fullPath, String userPath, Boolean recursive)
at Microsoft.VisualStudio.TeamSystem.ELead.ProjectCreationNew.EngineStarter.SafeRemoveDirectory(String folderToRemove)
end Exception entry