Deleted old character to make a new one, now it says the oldcharacter is still there?

[Durzo]

A friend of mine is in this predicament and too frustrated to ask. Has anyone else ran into this? Our understanding was if you deleted your old character you could still make a new one in the same world, even with server restrictions.

Any ideas or help?

Also, he switched because he hated the race he chose, we were fully aware he could level all jobs, etc...