I would like to create a "toolbar" for windows in c# and would like to fit it the in top space of the Windows desktop.
I would like the other windows program not be able to overlay my application. I also want other applications to treat my window as a part of the desktop so that when they maximize, you can still see my application.
You can create what is called an Application Desktop Toolbar. Your application will essentially communicate with the Windows Shell (and, consequently, other applications) to instruct the desktop how it should interact with your application.
This type of functionality is not built into .Net, but there's an excellent tutorial available to do this on Code Project.
Use the toolstrip control in the Windows Form designer.