BladeBox creates virtual encrypted volumes, which are AES-ENCRYPTED files which can be mounted as if they were disk drives (with a DOS drive letter too).
Virtual Encrypted Volumes (VEV) are seen and considered by the operating system as if they were actual volumes (drives), they have a drive letter, a volume name, and you can see them inside your My Computer resources and inside the Windows Explorer.
BUT actually they are transparently encrypted files on disk. Every time you write or read data to those volumes, the data buffer is transparently encrypted/decrypted on-the-fly. The key concept for security is that data on disk ALWAYS remain encrypted.