do you mean on a share or on your local drive? They have programs that you can buy to "hide" folder and files that you choose. If you like my post let me know if I blow an answer...well it's probably late and I have had too many beers! Cheers!!
Hot to PW protect web folder:
1 - Goto IIS
2 - highlight the folder
3 - properties
4 - Directory Security
5 - Check the "Integrated Windows Authorization: box
If I understand your question right, when you remove the everyone group, and add the user you want having access to the folder, and are logged on as another user and request to view the file, you should be prompted for a password to view the contents.
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