For a small utility I am writing (.NET, C#), I want to monitor clipboard copy operations and clipboard paste operations.
My idea is to provide my own data when pasting in
You need to hook in the clipboard hook by using a windows hook. A windows hook is a way of intercepting global events happening and providing your own hook procedure to replace or intercept the message. Have a look here on CodeProject that explains how to hook. Here's a clipboard helper that listens for the copy/paste functionality. Here's a Clipboard spy that just does that. Here's another article that implements a Clipboard hook.