The FSEvents API is ideal if you just want to watch directories but it doesn't handle the monitoring of individual files. Stu Connolly has a great Objective-C wrapper for the FSEvents C API, it's called SCEvents and you can get it here:
http://stuconnolly.com/blog/scevents-011/
The nice thing about FSEvents is that you just need to watch one folder and you will be notified of any changes that occur anywhere in the subfolder hierarchy of that folder.
If you need file-level notifications you will need to use kqueues. Uli Kusterer has a great Objective-C wrapper:
http://zathras.de/angelweb/sourcecode.htm#UKKQueue
Either of these methods is a lot easier than wrangling with the C APIs directly, which are not particularly well documented and a bit obtuse.
If you need to support Tiger you'll need to use kqueues as the FSEvents API wasn't officially available in 10.4.
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