Problem :
When starting windows an error message displays C:\ Recycle Bin corrupt or D:\ Recycle Bin corrupt. This also appears when deleting files or sending files to the recycle bin. Click on recycle bin and you see no files at all. 

There is a hidden folder C:\ $Recycle.Bin or D:\ $Recycle.Bin that is the root cause of this problem and needs to be deleted.
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Solution 1 Manual Fix
1. On the desktop click on Computer

2. Click on Organize on the top left menu then Folder and Search Options 
and open the Folder Options Window

3. Click on the View tab and check the Show hidden files, folders and drives click
Apply and Ok. *This will display the hidden folder $Recycle.Bin when you click on your C:\ or D:\ drive

4. Locate and right click on the $Recycle.Bin folder and rename it to corrupt or anything else. Right click on corrupt and delete it. 

Must rename $Recycle.Bin before deleting or it may continue throwing errors like Denied access or when you think it is deleted you see its still in your C:\ or D:\ drive or it passes the same errors to other systems on your network.

5. Go and refresh your desktop and your errors should be removed. Should now be able to use recycle bin normally.

The post states that it works for Windows 7 64 bit but I also tried it on Windows 8.1 64 bit and it worked great. My problem though was that I deleted some files and folders form within an encrypted folder and for some strange reason, some of the folders could not be removed from the recycle bin. The above solution worked perfectly.