In order to use WebDAV on a computer running Windows Vista or Windows 7 you must install Microsoft's Software Update for Web Folders. You can download this from the Microsoft Download Center at: http://www.microsoft.com/downloads/details.aspx?FamilyId=17C36612-632E-4C04-9382-987622ED1D64.
Once you've connected to WebDAV, you can create a mapped drive to your directory. This is a more stable connection, and you can work with it the same way as you do any other folder on your system.
Please add '/webdav/' to the end of the URL for it to work, the screen below is missing that.