Look at this CodeProject article:
Namespace extensions - the undocumented Windows Shell
  This article explains how you can
  easily create a namespace extension
  with lots of features without doing
  lots of work by using some
  undocumented shell functions. The most
  noticeable function is
  SHCreateShellFolderViewEx, which
  creates the view for you and creates
  all interfaces you need for displaying
  the contents of your folder. You can
  modify the behaviour of the folder by
  implementing a callback function. This
  is how Microsoft implements its own
  namespace extensions.