 <p>I found a better solution by extending <code>System.Windows.Forms.DataObject</code><br> <a href="http://www.codeproject.com/Articles/23139/Transferring-Virtual-Files-to-Windows-Explorer-in" rel="nofollow">Transferring Virtual Files to Windows Explorer in C#</a> </p> <p>also found some threads here on StackOverFlow that may help<br> <a href="http://stackoverflow.com/questions/12410114/drag-and-drop-large-virtual-files-from-c-sharp-to-windows-explorer">Drag and drop large virtual files from C# to Windows Explorer</a></p>