What it sounds like is happening is the Finder is crashing and automatically relaunching whenever you try to open that folder. Presumably there is something corrupt inside, and when the Finder tries to generate the icon preview of it it crashes. There could be something else causing the crash, but that seems most likely. This is why the problem follows it regardless of location--copying it copies the bad file as-is.
Assuming there are important things in that folder so you don't want to just throw it away, I can't actually give you any particularly useful advice. In the event nobody here has a good suggestion a Google search on Finder Crash will hopefully point you to something useful.
If you don't know what's in the folder and just want a list, you can do this:
Go to the Utilities folder in your Applications folder and open Terminal. In the window that appears, type "ls -l " (with a space after the trailing L--and those are both lowercase "L"s), then drag the folder onto the window. It should add some text along the lines of "/Users/you/Desktop/thefoldername". Now hit return, and it should show you a list of all the files inside the folder. If there's one that you think might be the problem I or someone else here can walk you through deleting it via the terminal.
