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A symbolic link is a text file that contains a relative or absolute path to another directory or file. When an operating system receives a request for a path that resolves to a symbolic link the operating system loads the linked directory or file transparently. So let's say I had the following symbolic link setup: Folder A -linked-to-> Folder B. When I browse to Folder A I would see the contents of Folder B as if they existed in Folder A! Since the folders are linked I can change any of the files in either location, and I can delete the symbolic folder (Folder A) without deleting the target folder! Symbolic links have been around for a looooooong time ( in pretty much every other operating system ) but Windows got this feature only recently - as of Windows Vista mklink ships with the OS bits. To make a symbolic link, open a command line and use mklink (in Windows Vista and greater):

mklink /D <path_to_symbolic_dir> <path_to_target_dir>

For example:

mklink /D "C:\My Linked Folder" "C:\My Project Folder"