I can map successfully to confluence using either MS Web Folders or DataFreeway. I can access the files via openoffice or notepad but only up to opening them in read only mode.
Double click on a webdav file does not open them automatically.

In http://confluence.atlassian.com/display/CONFEXT/WebDAV+Client+Compatibility it was mentioned that editing content (word/excel) is supported, but it seems not the case.

Hence, to make changes to webdav files, I need to copy them locally then re-upload it.
Here's the changes that I can make via MS Web Folders:

• Open a file in read only mode via an application like OpenOffice or notepad or MS Paint.
• Drag and drop. Cutting a webdav file to local hard drive does not delete the webdav file.
• Deleting a file
• Create/Delete a new folder
• Rename a file/folder through a right button click
• Changes to the content of a file can only be done via file upload to replace the older copy

Cheers
Roy