Password protected dirs in xp home

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Yes this is possible. Make sure your HDD (or partition) is NTFS formatted
and not FAT(32).

You can then turn off simple file sharing by opening Windows Explorer (not
Internet Explorer) and Click Tools -> Folder Options -> View -> on the
bottom deselect "Use simple file sharing" ...
After you have NTFS formatted partition and you turned off Simple files
sharing you can right click on folder click on Properties and go to Security
Tab where you can set who has access to your files.
 
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