T-SQL (SS2K8) :: File Sequencing / Indenting And Reporting

I have been trying to query SQL to generate relationship table for a set of files (CAD Files).They are stored in our Data management System I am able to get the following results from SQL.

DECLRE@Files TABLE( LEVEL VARCHAR(50), PARENT Varchar(50), CHILD Varchar(50))

INSERT@Files
SELECT'0' LEVEL, NULL PARENT, 'A' CHILD UNION ALL
SELECT'1' , 'A' , 'B' UNION ALL
SELECT'1' , 'A' , 'C' UNION ALL
SELECT'1' , 'A' , 'D' UNION ALL
SELECT'1' , 'A' , 'E' UNION ALL
SELECT'1' , 'A' , 'H' UNION ALL

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