When I 1st got my ppc-6700 I was able to delete certain files that already came on the ppc to free up space (the MS office templates and certain pictures in the WINDOWS folder) I tried to do it through the computer but I get the same error message, "Cannot Delete File is Read Only"

Anyone have any suggestions?

Use Total Commander or a similar program and unselect the Read Only property on the file you want to delete.

You can't really delete anything that's in ROM. Even if it appears to delete, it's still there taking up space. Nothing you can do about it.