Truly odd. I know terminal server does smoke and mirrors on some of the reg which is why you have to put it in install mode so it can watch the reg for changes. That said, DelTree() should not return 0 unless it is successful and the OS restores the deletion.
Have you tried the command without the trailing hack '\' as shown in the manual?
$ReturnCode = DelTree("HKEY_CURRENT_USER\EZReg")
Are all your tests during the logon sequence or are you testing after logon? Which tests, the KiX DelTree() or the RegEdit merge?
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