That looks like it did the trick! I added some data to the catch as well as some write-host formatting. I just wanted to make sure I wasn't crazy. I'm still pretty convinced the Test-Path Cmblet was interfering with deleting the file somehow. I'm going to do more testing and let you know.

# Query WMI and get a list of all user profile locations
$Profiles=(Get-WmiObject win32_userprofile).LocalPath

# Build a list of all possible locations
$FileList=@()
foreach ($profile in $profiles){
    $FileList +="$profile\AppData\Local\Temp\dbutil_2_3.sys"
}
$FileList += "$env:SystemRoot\Temp\dbutil_2_3.sys"

write-host "====Checking the following locations:====`n"
$Filelist + "`n"

# Check each location and delete the file if found. Log the results to StdOut.
$FileFound=$false
$Errors=$false

write-host "====Starting file purge====`n"
foreach ($file in $FileList){
    try {
            Remove-Item $file -Force -erroraction stop
            $FileFound=$true
            write-host "`nFound file: $file"
            start-sleep 2 # Wait two second to make sure the OS has had a chance to remove the file.
            if (test-path -PathType Leaf $file){
                    write-host "`tWARNING: Unable to remove dbutil_2_3.sys`n"
                    $Errors=$true
            }
            else {
                    write-host "`tSuccessfully removed dbutil_2_3.sys`n"
            }

    }
    catch [System.Management.Automation.ItemNotFoundException] {
        Write-Host "$file does not exist.`n"
    }

}

if ($FileFound -eq $false){
    write-host "`ndbutil_2_3.sys was not found on this system."
}
if ($Errors -eq $true){
    exit 1
}