Yes File System watcher is really built for this purpose.
You can monitor the files and directories through the usage of it.

download the demos from the referred links and further guide me about your requirements, if it doesn't fulfill your desired requirements (I 'll suggest you):

------------------------------------demo---------------------------------------------------

http://www.codeproject.com/Articles/26528/C-Application-to-Watch-a-File-or-Directory-using-F

http://www.codeproject.com/Articles/18521/How-to-implement-a-simple-filewatcher-Windows-serv

-----------------------------------msdn help-----------------------------------------------------

http://msdn.microsoft.com/en-us/library/system.io.filesystemwatcher.aspx