Ok, I have my custom class:

    public class FileItem : INotifyPropertyChanged
    {
        int id=0;
        string value="";
        public int Id
        {
            get { return id; }
            set { id = value; Changed("Id"); }
        }
        public string Value
        {
            get { return value; }
            set { this.value = value; Changed("Value"); }
        }


        public event PropertyChangedEventHandler PropertyChanged;
        void Changed(string name)
        {
            if (PropertyChanged != null)
                PropertyChanged(this, new PropertyChangedEventArgs(name));
        }
    }

 public BindingList<FileItem> FilesystemEntries = new BindingList<FileItem>();

And I have DatagridView1 with DataSource set to FilesystemEntries:

 binding.DataSource = FilesystemEntries;

Already I can Add and remove rows - these chnages are reflected on collection. However, Value and Id are not saved into bidning list when i change them in DataGridView, id is always 0 and value is "".

How can I make this work? Do I need to implement some interface to FileItem to allow editing properties?

ReadOnly of DGV is set to false, same to all columns. Editing, Deleting and Changing are enabled.