Teksys offer this solution but it is such a simple one that you dont need to pay a company extorsionate amounts of money just to set up webdav and give you a front end to open it in webfolder view.
The important thing is that there is a little bit of CSS that tells the browser to open the link as webfolders view. Everytime i have tried to produce a front end for it in dreamweaver or similar it has never worked opening in webfolder view without this little bit of code in the CSS
A {
behavior: url(#default#AnchorClick);
}
The downside to it all is that it only works in internet explorer.
But yeah...make sure that you have webdav installed and enabled.
Set up the folders you want to publish with IIS basic authentication against AD and SSL encryption.
The publishing path is the home folders share or shared file storage area on your fileserver, and providing NTFS permissions are set up right the user that authenticated will see only the folders they have acccess to.
Make sure that you have set read, write, directory browsing and script source access (i'm not sure about that one but i couldnt access my .shtml's without it) set up on the IIS side of things.
The only problem is when people start to open things directly from the webfolder instead of copying it to their local HDD first, it asks them to accept the SSL cert and authenticate all over again.
But other than that it works well at my school and on my home network and i've never had any problems with it.