VFD Manager
This is a virtual floppy drive for Windows NT / 2000 / XP (works also on 2003, it seems).
Note !!! This version works only on 32 bit systems !!!
See technical info on 64 bit compilation.
You can mount a floppy image file as a virtual floppy drive and directly access the contents — view, edit, rename, delete or create files on a virtual floppy, format a virtual floppy, launch a program on a virtual floppy… almost anything you can do with a real floppy.
What’s wrong with Daemon Tools? How is this one bettah?
Not significantly different, so it seems. It is specifically written to do floppies and the only real utility I found to do floppies for Virtual stuff.