F8 is the right key to press. If it's XP, you can also try F7.
You can also try msconfig to restart in Safe Mode.
For 98/ME, click Start, Run, type msconfig and press Enter. Under General tab, click Advanced. Tick Enable Startup Menu. OK. Restart.
For XP, in msconfig, choose the boot.ini tab, then tick the /safeboot option, OK, restart.
If you still can't get into Safe Mode, or can't delete the file in Safe Mode, post back with info on OS, where is the file located, and what is the file name?