I'm probably sounding a bit ungrateful here; if so, you can attribute that to the effort we all put in making things like Carbon and Vibez appear as genuine mass-storage under Windows and Mac. But the software at that link does
not make Touch/Iphone appear as a drive letter, let alone expose it as mass-storage: it lets you use WinFTP or WinSCP as your Rio Taxi equivalent, but still doesn't let you run applications, or load and save files directly, or use non-Iphone-aware applications.
There are, AFAIK, only two ways to have a drive-letter under Windows: be (what Linux calls) a "block device" offering raw sector access (this is what USB mass-storage comprises),
or be a Samba server in Network Neighbourhood. The former is impossible on the Iphone/Touch (as the built-in firmware won't relinquish control of the filesystem), the latter should be possible (Googles it)...
here's one, but it's a bit inconvenient. Looks like someone needs to write a nice Iphone GUI for it.
Peter