How can I password protect a folder in a workgroup?

By dlr ·
I was wondering if I submitted this question incorrectly or nobody has the correct answer?
Can someone please help me. I have a Dell Vostro 200 running XP SP3 with an attached external hard drive and am sharing the external hard drive. I have several users and each has their own PC. We are in a workgroup environment. On the external hard drive, I want to create folders for each employee and password protect each folder so the employees can back up their files. I removed Simple File Sharing and I created a generic user (on the PC with the external drive) with a password that all users will log into. The shared external drive has full permissions for the generic user. I will then create a folder for each user and I would like each folder to have a separate password so the folder is only used by that user. Any suggestions?

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