You cannot password protect
individual folders in XP. You restrict access by assigning
permissions to drives, folders and files.
To do this, you must be running NTFS as your file system on the drive in
question. If your hard disk/partition is not NTFS you will need to convert
it. To do this, open a Command Prompt window and enter the following
command:
CONVERT X: /FS:NTFS
Where X: is the drive letter you wish to convert. You may also want to see
http://www.aumha.org/a/ntfscvt.htm to ensure that you're getting the
optimal conversion.
After this step is completed and you've rebooted the computer, if
necessary:
XP PRO: In Windows Explorer, go to Tools, Folder Options, View and uncheck
Use Simple File Sharing. Now, when you right click on a drive, folder or
file (on an NTFS partition) and select Properties, you'll see a Security
tab. Here you can assign or deny permissions based on user name or user
group membership.
XP Home: By default, you can only make files and folders under My
Documents "private". This is done by right clicking a folder or file and
selecting Properties, Sharing. To change the
permissions on other folders, you need to boot the computer to Safe Mode
and log in on the built in Administrator account. In this mode, you'll see
the Security tab in Properties, and you can assign permissions based on
user name or group membership.
HOW TO: Set, View, Change, or Remove File and Folder Permissions in
Windows XP
http://support.microsoft.com/default.aspx?scid=kb;en-us;308418
HOW TO: Set, View, Change, or Remove Special Permissions for Files and
Folders
http://support.microsoft.com/default.aspx?scid=kb;EN-US;308419
HOW TO: Disable Simplified Sharing and Password-Protect a Shared Folder
in Windows XP
http://support.microsoft.com/default.aspx?scid=kb;EN-US;307874