As allready mentioned in the other Answers, that String concatenating and constant redrawing is your problem.
but why enumerate anyway, just to concat or append your items.
If you realy want to display it in a TextBox, this one liner should perform equaly fast.
TextBox1.Text = String.Join(Environment.NewLine, IO.Directory.GetFiles("o:\tapes\maxim500\dnc", "*", IO.SearchOption.AllDirectories))
(I think thats a bad design decicion)
If you realy have like 7k entrys..
I would prefer something like
Graeme_Grant
mentioned, a TreeView opening only the needed subfolders, or a ListView in VirtualMode .. maybee both mixed, depending on how many files are in a single subfolder
working with that 7k line TextBox.. who the hell is gona do anyting with that ^^ like searching that one entry you need.