Apple iPhone and iPod Touch offer lots of storage space which can be utilized for storing files, backups or as an external disk drive, but unfortunately Apple removed the ability to use the device as an external storage, However as always software's have been developed to bypass this restriction.
DiskAid is one such free software for Windows and Mac enabling owners to use their iPhone or iPod touch as an external disk drive, With DiskAid you can transfer files and folders between your iPhone or iPod Touch and your Computer with ease, DiskAid auto-detects any plugged in supported device and offers an easy to use Files & Folders Browser with drag and drop support for fast and easy operations.
You don't need to jailbreak iPhone or iPod and the softwares works well with all the firmware versions including the latest iPhone Software Update 2.0.