One thing maybe (or maybe not) you’ve noticed is that you can’t delete an entire directory using DDMS on eclipse.
To be able to delete a directory on simulator sd card you can use the ADB command and connect to device via shell.
The first thing to do, is to go to “<android-sdk-PATH>/platform-tools” and from there type:
Then connect via shell to the device that you want:
./adb -s emulator-5554 shell
Now you’ve connected to the device “emulator-5554″ and now you can remove the files or directories that you want!