I picked this up from the MS CRM team blog.
It relates to the scenario of linking CRM Entities to Sharepoint document management structures.
However, be aware of the recommended limits for SharePoint document libraries. The recommendation is less than a 1000 document libraries per site. For many businesses this would be exceeded very quickly. In addition, it is recommended to keep any document library view under 1000 (WSS v2) or 2000 (WSS v3) items and the maximum number or documents per library under 2 million. One last limitation that needs to be mentioned is the URL length which is related to folder depth and filename length. The maximum URL length is 260 characters.
It also goes into examples of how to use and create such links.