I am currently developing a replacement for Windows Explorer which will
allow administrators to create policies and allow/prevent various
activites of Windows Explorer.

I have a large 1TB+ file storage area with a lot of offline files. In
order to better manage the user directories:

1) I do not want a copy to be able to copy subdirectories (to prevent
accidental drag/drops in Explorer).

2) If a user tries to copy offline files they will be notified that the
files will need to be recalled first.

#1 is the most important.

Is there a way to do this by trapping Windows Explorer events directly
or will I have to write a complete replacement.