Private Sub Form1_Load(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles MyBase.Load
    AxSftDirectory1.OLEDropMode = SftControlOLEDropModeConstants.OLEDropSftControlManual
    AxSftDirectory1.AutoExpandDragDrop = True
End Sub

Private Sub AxSftDirectory1_OLEDragDrop(ByVal sender As Object, ByVal e As AxSftDirectoryLib25._ISftDirectoryEvents_OLEDragDropEvent) Handles AxSftDirectory1.OLEDragDrop
    ' make sure the control doesn't perform its usual default handling of
    ' the files (copy/move, etc.)
    e.defaultHandling = False

    If e.data.GetFormat(SftOLEClipboardConstants.sftCFFiles) Then
        Dim I As Integer
        For I = 1 To e.data.Files.Count
            MessageBox.Show("""" & e.data.Files(I) & """ being dropped.")
            ' perform your own processing here
        Next
    Else
        ' some other format
    End If
End Sub

Private Sub AxSftDirectory1_OLEDragOver(ByVal sender As Object, ByVal e As AxSftDirectoryLib25._ISftDirectoryEvents_OLEDragOverEvent) Handles AxSftDirectory1.OLEDragOver
    ' make sure the control doesn't perform its usual default handling of
    ' the files (copy/move, etc.)
    e.defaultHandling = False

    e.effect = 0
    If e.data.GetFormat(SftOLEClipboardConstants.sftCFFiles) Then
        If Not e.folder Is Nothing Then
            ' we'll accept anything
            e.effect = 3 ' vbDropEffectCopy | vbDropEffectMove
        End If
    End If
End Sub