Hello, Is it possible to put .exe file on an iPhone? Configuration: Windows XP / Firefox 6.0.2

Yes you can copy any file type. But, EXE files will not run on the phone.

I got that but lets say that I want to use the iphone as a USB. More of a storage device than anything else.. (obvious USB and CD options are out of consideration). How do I get the ability to copy and paste files freely using the space provided in the iphone considering its not necessarily a media or jpeg file? Does it have to be jail-broken to allow that functionality?

It looks like there are many ways. see this web page and/or Google "how to use iPhone as a hard disk" https://www.getapp.com/collaboration-software/a/dropbox-online-sync-and-file-sharing/ Good Luck