It is possible to dispaly file system folders and files in a SharePoint website. One need to follow these steps:

1. Add a 'Page Viewer Web Part' in the web pase where you want to display file system folders and files.

        
 

2. Click on the 'Open tool pane' link in the 'Page Viewer Web Part'  

        
 

3. Select 'Folder' as the source type and provide the link to the file system folder as \\FileServerName\FolderName

        
 

4. Click on the Apply button in the tool pane. All the files and folders contained in the location '\\FileServerName\FolderName' will display in the web page like below:

        
 

It will display all the files and folders in the web page just like displayed in the windows explorer.