In this kind of scenario I would not use a textbox, but a label or a read-only textbox. To get the user input just use the key-press event on your form (you have to enable KeyPreview on the form too) - then just remember the keys/numbers pressed and output the format you are targeting - should be a rather easy algorithm (Char.IsNumber, and String.Format might come in handy):
private int _inputNumber = 0;
private void Form_KeyPress(object sender, System.Windows.Forms.KeyPressEventArgs e)
{
if (!Char.IsNumber(e.KeyChar)) return;
_inputNumber = 10*_inputNumber + Int32.Parse(e.KeyChar.ToString());
ReformatOutput();
}
private void ReformatOutput()
{
myOutput.Text = String.Format("{0:0.00}", (double)_inputNumber / 100.0);
}
Note: Why not use a textbox - because it's internal logic with select/replace/remove/type is so overcomplicated that the cases you would have to check are just to much to handle gracefully - so instead of trying to change a cannon into a sling you should start with the sling.