Is there a way to check if a file is in use?

Use this to check if a file is locked:

using System.IO;
using System.Runtime.InteropServices;
internal static class Helper
{
const int ERROR_SHARING_VIOLATION = 32;
const int ERROR_LOCK_VIOLATION = 33;

private static bool IsFileLocked(Exception exception)
{
    int errorCode = Marshal.GetHRForException(exception) & ((1 << 16) - 1);
    return errorCode == ERROR_SHARING_VIOLATION || errorCode == ERROR_LOCK_VIOLATION;
}

internal static bool CanReadFile(string filePath)
{
    //Try-Catch so we dont crash the program and can check the exception
    try {
        //The "using" is important because FileStream implements IDisposable and
        //"using" will avoid a heap exhaustion situation when too many handles  
        //are left undisposed.
        using (FileStream fileStream = File.Open(filePath, FileMode.Open, FileAccess.ReadWrite, FileShare.None)) {
            if (fileStream != null) fileStream.Close();  //This line is me being overly cautious, fileStream will never be null unless an exception occurs... and I know the "using" does it but its helpful to be explicit - especially when we encounter errors - at least for me anyway!
        }
    }
    catch (IOException ex) {
        //THE FUNKY MAGIC - TO SEE IF THIS FILE REALLY IS LOCKED!!!
        if (IsFileLocked(ex)) {
            // do something, eg File.Copy or present the user with a MsgBox - I do not recommend Killing the process that is locking the file
            return false;
        }
    }
    finally
    { }
    return true;
}
}

For performance reasons I recommend you read the file content in the same operation. Here are some examples:

public static byte[] ReadFileBytes(string filePath)
{
    byte[] buffer = null;
    try
    {
        using (FileStream fileStream = File.Open(filePath, FileMode.Open, FileAccess.ReadWrite, FileShare.None))
        {
            int length = (int)fileStream.Length;  // get file length
            buffer = new byte[length];            // create buffer
            int count;                            // actual number of bytes read
            int sum = 0;                          // total number of bytes read

            // read until Read method returns 0 (end of the stream has been reached)
            while ((count = fileStream.Read(buffer, sum, length - sum)) > 0)
                sum += count;  // sum is a buffer offset for next reading

            fileStream.Close(); //This is not needed, just me being paranoid and explicitly releasing resources ASAP
        }
    }
    catch (IOException ex)
    {
        //THE FUNKY MAGIC - TO SEE IF THIS FILE REALLY IS LOCKED!!!
        if (IsFileLocked(ex))
        {
            // do something? 
        }
    }
    catch (Exception ex)
    {
    }
    finally
    {
    }
    return buffer;
}

public static string ReadFileTextWithEncoding(string filePath)
{
    string fileContents = string.Empty;
    byte[] buffer;
    try
    {
        using (FileStream fileStream = File.Open(filePath, FileMode.Open, FileAccess.ReadWrite, FileShare.None))
        {
            int length = (int)fileStream.Length;  // get file length
            buffer = new byte[length];            // create buffer
            int count;                            // actual number of bytes read
            int sum = 0;                          // total number of bytes read

            // read until Read method returns 0 (end of the stream has been reached)
            while ((count = fileStream.Read(buffer, sum, length - sum)) > 0)
            {
                sum += count;  // sum is a buffer offset for next reading
            }

            fileStream.Close(); //Again - this is not needed, just me being paranoid and explicitly releasing resources ASAP

            //Depending on the encoding you wish to use - I'll leave that up to you
            fileContents = System.Text.Encoding.Default.GetString(buffer);
        }
    }
    catch (IOException ex)
    {
        //THE FUNKY MAGIC - TO SEE IF THIS FILE REALLY IS LOCKED!!!
        if (IsFileLocked(ex))
        {
            // do something? 
        }
    }
    catch (Exception ex)
    {
    }
    finally
    { }     
    return fileContents;
}

public static string ReadFileTextNoEncoding(string filePath)
{
    string fileContents = string.Empty;
    byte[] buffer;
    try
    {
        using (FileStream fileStream = File.Open(filePath, FileMode.Open, FileAccess.ReadWrite, FileShare.None))
        {
            int length = (int)fileStream.Length;  // get file length
            buffer = new byte[length];            // create buffer
            int count;                            // actual number of bytes read
            int sum = 0;                          // total number of bytes read

            // read until Read method returns 0 (end of the stream has been reached)
            while ((count = fileStream.Read(buffer, sum, length - sum)) > 0) 
            {
                sum += count;  // sum is a buffer offset for next reading
            }

            fileStream.Close(); //Again - this is not needed, just me being paranoid and explicitly releasing resources ASAP

            char[] chars = new char[buffer.Length / sizeof(char) + 1];
            System.Buffer.BlockCopy(buffer, 0, chars, 0, buffer.Length);
            fileContents = new string(chars);
        }
    }
    catch (IOException ex)
    {
        //THE FUNKY MAGIC - TO SEE IF THIS FILE REALLY IS LOCKED!!!
        if (IsFileLocked(ex))
        {
            // do something? 
        }
    }
    catch (Exception ex)
    {
    }
    finally
    {
    }

    return fileContents;
}

Try it out yourself:

byte[] output1 = Helper.ReadFileBytes(@"c:\temp\test.txt");
string output2 = Helper.ReadFileTextWithEncoding(@"c:\temp\test.txt");
string output3 = Helper.ReadFileTextNoEncoding(@"c:\temp\test.txt");

You can suffer from a thread race condition on this which there are documented examples of this being used as a security vulnerability. If you check that the file is available, but then try and use it you could throw at that point, which a malicious user could use to force and exploit in your code.

Your best bet is a try catch / finally which tries to get the file handle.

try
{
   using (Stream stream = new FileStream("MyFilename.txt", FileMode.Open))
   {
        // File/Stream manipulating code here
   }
} catch {
  //check here why it failed and ask user to retry if the file is in use.
}

Updated NOTE on this solution: Checking with FileAccess.ReadWrite will fail for Read-Only files so the solution has been modified to check with FileAccess.Read.

ORIGINAL: I've used this code for the past several years, and I haven't had any issues with it.

Understand your hesitation about using exceptions, but you can't avoid them all of the time:

protected virtual bool IsFileLocked(FileInfo file)
{
    try
    {
        using(FileStream stream = file.Open(FileMode.Open, FileAccess.Read, FileShare.None))
        {
            stream.Close();
        }
    }
    catch (IOException)
    {
        //the file is unavailable because it is:
        //still being written to
        //or being processed by another thread
        //or does not exist (has already been processed)
        return true;
    }

    //file is not locked
    return false;
}