>The problem is, some users love to bury directories deep into their trees, and/or create l o n g directory names, thereby exceeding the width of the textbox.

You could just use an Edit Box. I would make one pretty long and two lines high. Or, how ever you choose to set the Value property, you could set the tooltiptext property to the complete path.

A word wrapped label would work too, but it would be uneditable by the user. So it depends on what you want.