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
You may want to look at the ExplorerBrowser object.
See http://blogs.msdn.com/ieinternals/archive/2009/12/30/Windows-7-Web-Browser-Control-will-not-browse-file-system.aspx for more details.