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Protect a shared folder using password

Q: Is it possible to create a password for a shared folder within a network
running Windows XP? If so how?

A: Sure. Create a username with a password on shared computer. Make sure no other computer use the same username. In the shared folder, remove everyone and add the username with permissions under Sharing and Security tabs. When accessing the shared folder from another computer with different username, a screen will prompt for asking the username and password.

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