Re. the SCSI tape drive - it's perfectly normal for it to appear as a removable disk because that's exactly what it is! It's for the same reason that optical drives also appear as removable disks i.e the drive part (eg the CDROM drive or a tape drive) is fixed but the data is stored on removable media (eg CDs, tapes etc). Diskmgmt.msc is Disk Management (not drive management) hence it's only concerned with the media.
Tape drives are basically used for backup, primarily server backups. Their main advantage was (and still is), their data capacity - a few years ago tapes could hold a few gigabyte of data, currently they are available in sizes up to about 300GB, although this depends heavily on the type of tape drive you have. Backup to tape is not always the quickest method available but in server/network environments this often isn't a problem as the backup can simply be left running overnight.
You asked if you could use the tape drive like a CD recorder or USB flash stick...
It's probably got the most in common with DVDRW (or CDRW) in as much that both use re-writable media & are often used for backing up data. Bear in mind that USB flash sticks are not often used for backup purposes as they are far more suited to data transfer & temporary data storage. One of the main differences between tapes & optical media is of course the fact that tapes are sequential. In other words, you can insert a CD into a computer & the whole contents of the CD is visible & accessible immediately through Explorer or similar. Whereas a tape has to be spooled (same principal as a VHS video tape).
Re. the temps...
Obviously the only worrying temperature is the HD1 temp. That said, given that the reported temp is so high (111 C) & that the exact same temperature is reported 3 times out of 4, with the 4th temp being normal, I'm wondering if this is actually an erroneous reading.
You could try something like Everest as a comparison:http://www.majorgeek...tion_d4181.html
When you run Everest, you'll see a menu on the left. Expand the 'Computer' branch & click on the 'sensor' option to get the temps.