Mediafour, the makers of XPlay a new $30 program, has come out with a new version of their software which allows the iPhone/Touch to be used as a portable drive with a lettered directory.  This software is a little more expensive than most things you see for the iPhone but it makes transferring files a bit more streamlined.

Windows users will now be able to go to “My Computer” and actually see the iPhone/Touch listed there as an external hard drive.  Now with simple drag-n-drop actions you can drag and drop files, folders, and even themes without the need for SSH to access the root directory on your iPhone.  This can, and will, be a very valuable piece of software that makes the iPhone so much easier to use as a portable drive.