I'm looking for a nice way to render overlays over a native Windows form not owned by myself preferably using a library available for .NET (WinForms, GTK#, ...). Precisely, I'd like to display a few labels or text boxes at a given location on the window.
Device Context & System.Drawing: What I'm currently doing is drawing directly onto the other windows' device context, which causes flickering, as parts of the other application are redrawn in unpredictable intervals. I therefore would have to catch its WM_PAINT event using hook magic, but that's actually not as far down as I'd like to go unless there's no simpler way.
Transparent window overlay with visible child labels: another technique I tried was creating a Windows.Forms.Form with the other windows' size, using TransparencyKey to make only the children visible. This seems pretty hard to get correct, as I don't want the window to be the upper-most one but only exactly one Z-level above the foreign window. The upside would be, that I could add more behaviour to it, as I could actually handle click events, etc.
How would you implement it / deal with the problems in the two techniques described above?