I need to make a file not appear to another program. For instance, when another program gets the list of files in a folder, I want one particular one not to show up. I am injecting a DLL from which my code will run into the process from which I want to hide the DLL file on the filesystem. I am using Microsoft Visual C++ 2010 and Windows 7.
Yes, as you've mentioned you need to intercept the file/folder enumeration APIs and filter out the specific file/folder from the enumeration result in order to "hide" that file/folder. This can be done either at user mode or kernel mode.
User mode: User mode hooking involves DLL injection. There are many places where you can hook:
Generally, user mode tend to become "ugly" (difficult to manage) as you need inject your DLL into all of the running processes if you want a system-wide hook (or at least into Explorer.exe or your target application). Many applications, like security software, have protection mechanisms to detect and deny DLL injection.
A cleaner way to implement user mode hooking is to hook APIs in NTDLL.dll (using either EAT or inline hook). All other APIs (like FindFirstFile/FindNextFile) end up calling an equivalent NtXxx APIs (like NtQueryDirectoryFile) provided by NTDLL.dll. The NtXxx API is the point where control jumps to kernel mode by executing INT 2E/SYSENTER.
Kernel mode: This involves writing a driver. Again, in kernel mode there are many places where you can install hook:
Kernel mode hook tend to be cleaner as they generally installed at one "centralized place". However, you should be very careful as a small mistake/mishandling in driver code can end up with a BSOD.
PS: There are many hooking library/frameworks available to ease the job of writing code. Some popular ones are:
http://www.madshi.net/madCodeHookDescription.htm
http://easyhook.codeplex.com/
PPS: Hiding files/folders using such techniques without user's consent might be a questionable action and can become problematic (Remember Sony DRM protection software issue? ;) ). This is what rootkits do! There are many user mode and kernel mode rootkits that use the techniques mentioned above to hide files/folders. There are various anti-rootkit software available to detect and restore all sorts of hooking described above. Many anti-virus software raise a flag when they detect such rootkit like behavior (like API hooking, hidden files, SSDT hooks etc.)
Few resources:
http://www.codeproject.com/KB/threads/APIHooking.aspx
http://www.codeproject.com/KB/DLL/funapihook.aspx
http://www.codeproject.com/KB/system/api_spying_hack.aspx
http://www.codeproject.com/KB/system/hide-driver.aspx
http://www.uc-forum.com/forum/c-and-c/59147-writing-drivers-perform-kernel-level-ssdt-hooking.html
http://www.security.org.sg/code/apihookcheck.html
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