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folder protection in win 2000 pro

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Dear All:

Does windows 2000 pro have folder protection like password protect at local system policies?.
I have 20 systems on network Every system are connected from IP and Workgroup No DNS or Active Directory is Installed. How can I protect my folder and after sharing of folder other user must enter password for access to protected folder.
Please share your experience to solve this problem.

Your cooperation would be highly appreciated.

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