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If you search on these forums for 'password protect folder' you should find a few (5) threads that have solutions for you.

The following two ways work:

1. Use Disk Utility to create an encrypted .dmg containing your content link:http://docs.info.apple.com/article.html?artnum=107333
or
2. Use either of these two pieces of software:
a) http://www.dekorte.com/projects/shareware/Crypt/
b) http://www.apimac.com/secret_folder/index.php

Are you familiar with a .dmg? This article explains what a DMG is: http://docs.info.apple.com/article.html?artnum=106161
 
THanks a lot bro.

I'm trying to do it the first way you mentioned and the folder keeps getting mounted on my desktop. Do you know how I can set it to mount on my external HD?

Thanks again!
 
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