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I'm running Windows XP Home Edition SP3 and have installed True Crypt to create encrypted volumes. Works great. Now I want to lock just a few folders and maybe a few .txt files from prying eyes. I'm not looking for encryption on the order of True Crypt, but don't want anything too weak that an average hacker could crack. Any suggestions?

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Why not just go with TrueCrypt? Even if you don't need that strong encryption, what's the harm if it does the job? Knowing the reason why TrueCrypt is not a good option for this might help in determining what it is that you're looking for, in terms of ease of use, speed, need to be able to break it yourself, or such. – Ilari Kajaste Oct 13 '09 at 9:38
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You can try Free Hide Folder :

Free Hide Folder is a free computer security software to hide your private folders. It is very useful to keep your personal data away from others. Others will not know where your personal files exist and they will not be able to accidentally view them. You can hide folders simply with a few mouse clicks. Free Hide Folder is protected by a password that you can change or remove at any time.

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I've use My Lockbox to hide files on my laptop from prying eyes. Not sure it is hacker proof but it seems to work well enough.

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I happen to use Cryptainer LE (now Cypherix LE) for this sort of thing. It is something like TrueCrypt,but rather simplisitic and automatic, but powerful enough. It mounts up as a virtual drive, just like TrueCrypt. 25 MB limit, if that's a concern.

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