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Microsoft has released a free software program, Microsoft Private Folder, which allows you to password protect a folder.

Privatefolder_123108It’s pretty easy to work with for the home user but one wonders what businesses will think about employees using it without permission (imagine if an employee puts valuable company material into a folder and then leaves, without any way for the company to retrieve that data).  I’m not even sure it’s manageable through Group Policy.  

At any rate, it’s free and you can download it here (via CNET).

Alex Eckelberry