Hi George,
Yes, the DataFinder - if activated - register all changes in the "Search Area". This works for adding or deleting files, and also for file renaming or moving etc. The functionality is realized through a background process (by using very low resources) and an OS function which recognizes all file changes.
Independent of this kind of notification the DataFinder scans the "Search Area" periodically. You can configure and schedule both parts of indexing in the dialog "DIAdem>>NAVIGATOR>>Settings>>My DataFinder>>Configure>>Indexer".
Greetings
Walter