No errors in the event log in relation to the remove command? When you physically go look on the server, that file is not there (vs. just not reported in the admin console)?
Event Log says the file was uploaded, no event for the file opening. Not surprising as the Admin Console gave the file exists error before it opened. The file was no where to be found on the server - not in any of the db folders nor could it be found via searching on the server. File also did not appear in the Admin Console listing.
Ended up putting the file into the db folder and then opening it via the console.