Usually Windows Phone handsets can’t be used as simple USB storage devices and if you’re familiar with Zune hardware, you should know that the same rule applies to them. However, there’s a registry edit that will allow you to implement this feature and make a Samsung Omnia 7 or HTC HD7 your USB stick.
XDA Developers forum member MarcHoover created an app called USB Storage Enabler Tool, that makes the Windows Phone 7 gain access to its memory freely and use it as a USB stick. Details can be found in the source link and this is a mere first step in customization that WP7 is going through. Let’s see what more Mango OS will add to it…