Microsoft apparently released a new piece of software called private folder today. The software creates a folder called my private folder which can be password protected to keep the prying eyes of your loved ones from finding files they should not see. Windows Genuine Advantage will check twice if your computer is running a legit copy of windows xp.
A freeware alternative without checks and snooping would be true crypt. You simply create a container on one of your hard drives and mount if whenever you want to use it. True Crypt has another advantage: It is available for Windows (xp, 2000 and 2003) and Linux. Take a look at my basic true crypt tutorial that I´ve written a while ago.
True Crypt has another advantage over private folders. No one knows that there is a hidden container on your hard disk as long as you do not mount the countainer it is hidden and not accessible at all. Private folders are always there and make the curious even more curious in my opinion.
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