How do I setup users on my MacBook Pro (Snow Leopard) such that the along with having different work spaces, each user has secured folders and files from other users?
This is only currently possible because your users have appropriate permissions to see each other's directories. Perhaps all of your users are currently administrators? If so, then that is your problem. Otherwise, if your users are not currently administrators, you can set the permissions on each user's home directory to be less permissive (by reducing access for group and world).