I've thought for quite a while now that there is quite a need for a virtual CDRW, thought about writing it myself except that it has been a long time since I have written a non java application.
Anyway, don't have to write it now because there is Note Burner! I don't know how many times I have used a physical CDRW to burn the songs I have purchased through iTunes so that I could rip the songs back and use them in home movies or to put on a non-ipod music player. Note Burner looks like it is a CDRW drive that has physical media in it so iTunes and any other software you may use to burn music CDs will let you burn the songs directly to MP3 files on your Windows computer.
Very cool stuff, I already bought my copy and it works great.