Hmmm... I just tested that and it worked for me.

Couple questions.

1. Were there any files in the folder?
2. Is this a shared remote folder or a local drive?

If the Folder is empty then it will not be removed (currently reported bug)
 


RD "C:\TEMP\" /S

That had a couple files in it removed the entire folder for me just now.
 
Please add some error code output to your script and see what the returned error is.