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.