Creation of folder and uploading files in folder

Question

Dear all genius please help me with this, my requirement is I want to let user create directory (folder) and upload files on it as well as same files goes inside the database too so that user can search the file with the key tag. Now the problem is, suppose a user created a folder and uploaded file on it, now when the user right click on folder it should show the option of creating sub folder again inside the folder, creation of folder infinite in sub folders and so on the file could be uploaded like wise in each folder. Please if any one could help me with this. I am creating document management system. Any help would save my life. Thanks a trillion in advance.