Quote:
GMail Drive is a Shell Namespace Extension that creates a virtual drive in the Windows Explorer, allowing you to use your Google Gmail account as a storage medium.
It allows you to do basic file manipulation, such as copy and delete of files inside the Gmail account. Because it is a Shell Extension, the interface you work in is Windows Explorer itself.
GMail Drive appears as a virtual drive under your My Computer folder in Windows Explorer.
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Source : http://blogs.zdnet.com/Google/?p=121
EDIT: Just so there is no confusion... This is a 3rd party peice of software that is using your gmail account for storage... it is not GDrive.