Hidden Gekko, according to your paste from the terminal you do get a root prompt, so the rest is simple.
So if you want to delete the file just type "rm filename" (rm stands for ReMove) at the root# prompt.
Read on for a little more info:
When you type "sudo -s", it's essentially the same as typing "su", but they are slightly different:
"sudo -s" The password is YOUR password.
"su" The password is ROOT'S password.
su stands for Switch User, and without arguments it assumes "su root". With su you can switch to any user, provided you know their password.
"sudo" stands for SuperUser DO (do something as super-user, or root). So really, you should be entering "sudo rm filename" instead of going into the root# prompt with "sudo -s". Remember, with "sudo" you enter YOUR password, not the root password.
Hope this helps.