Update: It looks like Microsoft is pulling this down. The reason being that in a corporate environment it would be way to easy for people to hide stuff in this password protected folder. There also is no recovery options. I personnaly like it and if you can”t remember the password then don”t use it!!!
Microsoft has released Private Folder 1.0 for Windows XP SP2. This free product (that is not supported) allows users to lock a folder with a password to a folder called My Private Folder. Passwords for this folder must be 6 – 16 characters long and can only contain letters and numbers…for some weird reason symbols are not included.
The folder remains unlocked for 5 minutes of idle time before you must enter your password again. That threshold can be configured from 3 minutes of idle time to never (thus you would have to manually lock it).
You can download Private Folder 1.0 directly from Microsoft”s website.