We have shared both free and paid utilities to use iPhone as an removable disk-drive, iPhone Folders is yet another free software which takes it a bit further by allowing users access to the iPhone File-system right from Windows Explorer - the explorer extension let users browse contents of their iPhone or iPod Touch like any other removable drive. They can perform regular file copy-paste operations and create shortcuts as usual coupled with the ability to view thumbnail previews of png and jpg files on the device.

The extension requires iTunes 8/9 for normal operation and supports both jailbroken and non-jailbroken phones (in later case access is limited to only Media folder), the free extension supports Windows XP, Vista and 7 and can be obtained from here - http://iphonefolders.com/ .