Directory Tree Iterations

I discovered this iteration when doing a full virus scan using Kaspersky 2009.
It was taking so long that I checked the scan log and found that it was tunneling down through the iterations of the "Application Data" Folder, ad-infinitum.
The screen-shot shows the beginning of what appears to be an infinite series of App' Folders.
The upshot of this is the inability to do a full scan virus check using Kaspersky.
Oddly enough, Windows Vista Live OneCare full scan does not exhibit this problem.

Any thoughts please.

That's a junction point, not a "real" folder.

Check out this explanation:

http://www.vistax64.com/general-discussion/215048-some-folders-locked-acess-denied.html#post986760

If that screenshot is from Kaspersky itself, it's probably buggy. If Explorer is showing you the same recursive structure, my guess is that something or someone on your machine was trying to override the "access denied" you'd normally get when trying to go into that folder, and somehow managed to break default FS security. A CHKDSK /F might help.