IPhone Folders app, whih is a web application, is a system extension for Windows Explorer and allows to directly access the iPhone filesystem.
iPhone folders can be both compatible with Windows XP, Vista and Windows 7. On a jailbroken iPhone to use as well as in an unmodified device - no jailbreak your iPhone has folders but only to access the Media folder of the iPhone.
Using this extension, you can browse your phone filesystem, copy files to and from it, open files directly from iPhone, create shortcuts to folders on iPhone. In programmed mode it will display thumbnail previews of png and jpg files on phone, application icons for installed applications.
It's a great tool, but too bad that I'm here at work and at school no admin rights, then perhaps it needs to make do with ifunbox. With Win 7 64-bit test, iPhone Folders does not work and can only access the pictures, as well as without tool. Win 7 32-bit it works wonderfully.
For me in Windows XP I see the Folders Explorer iPhone, including a folder with the name of my iphone and this system folder with the following contents: Application Archives, Categories, DCIM, Downloads, iTunes_Control, photos, podcasts, public staging, purchases, Recordings, Safari.
Obviously a few folders and not really all the system folder but I am very happy with it!