Microsoft Releases Encrypted Folder Application for XP
 

Microsoft has its Private Folder 1.0 application which allows you to encrypt files in a folder called "My Private Folder." With Private Folder 1.0, Microsoft encourages users to share their private data with friends, colleagues and others that share your PC. The folder is secured by a single password and Microsoft even provides a password strength display to show you how secure yours is as you enter it for the first time. Minimum password length is 6 characters with 16 characters being the max.