Detecting DragDrop target when dropped into Explorer

I have an application which i need to allow a user to perform drag & drop of
a "virtual file" into explorer. Upon dropping the file into explorer, my app
would create a blank file at the location and begin downloading data into
it.

I can get the app to create an empty file for use with the DoDragDrop(),
which essentially moves a blank file (e.g. "%TempFolder%\foo.txt") into the
proper destination, but there doesn't appear to be any method of retrieving
the location of the FileDrop where explorer has moved this file to.

Any ideas?