Folder Password Protect is a software program that lets you set a password on folders of your choice. What makes Folder Password Protect better than built-in security of Windows XP? You don't have to create separate user accounts or use the NTFS file system. Password Protect Folders can protect a folder on both NTFS and FAT32 volumes. Moreover, you can protect folders on USB flash drives and network drives as well as on the hard drive.