At the moment creation of virtual files and directories (folders) is not possible. Our Callback File System product lets you create a virtual file system with files and folders inside. This file system can be mounted as a separate virtual disk and as a folder of the existing disk with NTFS file system. So with Callback File System you can create virtual (sub)folders with files and other subfolders inside.

Version 3 of CallbackFilter will support creation of virtual files and directories.