Any idea how to remove this file and free up the root space?
If you have removed it and the space still isn't freed, then it means a process has a file handle opened on it.
Try and find the PID of the process using, for instance:
for process in /proc/[0-9]*; do
for fd in $process/fd/*; do
file=$(readlink -f $fd)
if [ "$file" = "/root/dead.letter" ]; then
echo $process
fi
done
done
Then kill it/them.