XP Corrupt folder

I have a very strange problem. I have a windows xp sp3 machine where there is a folder that shows nothing in it. Looking at the properties of the folder, it shows 0 bytes. If I go into c:\documents and settings\user\recent I can see the files and folders that were in that empty folder. I thought they were just empty shortcuts but no, if you click on the files, they open. If you click on a folder it takes you to c:\documents and settings\user\desktop\empty folder\folder. So it is telling me that folder exists, is located in the empty folder and I can open all the files. But when I go back to that folder on the desktop, its empty. SHowing hidden files does nothing! Even 1 program that does browses for files can see a folder in there but when you go to the folder, EMPTY! Help!!