If anyone has similar issue try to delete $Recycle.bin from all drives by the following method(it helped me).
a. Open an elevated Command Prompt window. To open an elevated Command Prompt, clickStart, click All Programs, clickAccessories,right-click Command Prompt, and then clickRun as administrator.
b. Type the following command and press ENTER: rd /s /q D:$Recycle.bin
(This clears out the $Recycle.bin folder from the D:\ partition. You may have to do this for each hard disk partition in your system.)