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Use FindFirstChangeNotification function for detecting of changing (creating/removing) directory.

procedure TForm1.Timer1Timer(Sender: TObject);
var
  Dir: string;
begin
  Dir:=Edit1.Text;
  if FindFirstChangeNotification(
       PChar(Dir),
       False,
       FILE_NOTIFY_CHANGE_DIR_NAME)<>INVALID_HANDLE_VALUE then
    Label1.Caption:=Dir+' directory presents'
  else
    Label1.Caption:=Dir+' directory absents';
end;

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