Do you still have the original folder protection software? Good policy to keep the installers.
If you re-install this software does that decrypt the protected folder?
The key here is that software uses its own language to encrypt.
You could try using windowsxp
To decrypt a file or folder
Open Windows Explorer
Right-click the encrypted file or folder, and then click Properties.
On the General tab, click Advanced.
Clear the Encrypt contents to secure data check box.
Note
To open Windows Explorer, click Start, point to All Programs, point to Accessories, and then click Windows Explorer.
When you decrypt a folder, you are asked if you want all files and subfolders within the folder to be decrypted as well. If you choose to decrypt the folder only, the encrypted files and folders within the decrypted folder remain encrypted. However, new files and folder that you create within the decrypted folder will not be automatically encrypted.
This is just a stab in the dark idea you coudl try>>
Windows also has the take ownership of folders that have a denied access.
But I dont know if this would work.
Right-click the folder that you want to take ownership of, and then click Properties.
2. Click the Security tab, and then click OK on the Security message (if one appears).
3. Click Advanced, and then click the Owner tab.
4. In the Name list, click your user name, or click Administrator if you are logged in as Administrator, or click the Administrators group. If you want to take ownership of the contents of that folder, select the Replace owner on subcontainers and objects check box.
5. Click OK, and then click Yes when you receive the following message:
You do not have permission to read the contents of directory folder name. Do you want to replace the directory permissions with permissions granting you Full Control?
All permissions will be replaced if you press Yes.
Note folder name is the name of the folder that you want to take ownership of.
6. Click OK, and then reapply the permissions and security settings that you want for the folder and its contents.
Good Luck