My (C#, .NET 3.5) application generates files and, in addition to raising events that can be caught and reacted to, I want to display the target folder to the user in a form
Check out this article here, it shows how to do this in .NET and WinForms. Doing it this way gives full-control over what the user sees.
I've used it in one of my applications and it works really well. You can show icon/details/list view and it stops the user moving to other directories (which is often the problem of showing the standard file/directory dialogs.
I use it to show the screen like the one below below http://img7.imageshack.us/img7/7647/screenshotbaf.png: