Open the Start menu and select My Network Places.
At the Network Tasks panel (you can find it on the left part of the window) click Add a Network Place. Network Place Wizard will be launched.
Click “Next” at the Add Network Place Wizard welcome screen.
Select “Choose another network” location and then click “Next”.
Type "http://" and server's IP address and port. For your iPhone it is http://127.0.0.1:8080. This information is displayed on top of the “Online” tab on your iPhone/iPod Touch.
Enter a name for this new connection or leave suggested.
Press Finish.
As a result you should get network drive mounted and ready to use.
Make sure that is running.
Open the Start menu and click “My Network Places”
Find the network drive under Network Locations and double-click it.
Attention: under Windows XP you should specify 8080 port, because of limitation of system's WebDAV client.
Attention: sometimes your iPhone may change IP address inside WiFi network. In this case you need to reconnect to the WiFi Drive again using the new IP address.
Alternative: you can also use popular WebDAV client NetDrive (www.netdrive.net, free for non-commercial home use) to connect to your device. In many cases it is more simple and reliable solution than standard client.