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With today’s release of the Windows Azure Tools and SDK version 1.1, also the Windows Azure Drive feature has been released. Announced at last year’s PDC as X-Drive, which has nothing to do with a well-known German car manufacturer, this new feature enables a Windows Azure application to use existing NTFS APIs to access a durable drive. This allows the Windows Azure application to mount a page blob as a drive letter, such as X:, and enables easily migration of existing NTFS applications to the cloud. This blog post will describe the necessary steps to create and/or mount a virtual hard disk on a Windows Azure role instance.
http://blog.maartenballiauw.be/post.aspx?id=b80bbb59-b768-47ea-b072-06b6686e3a82