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Im wondering what is the best way to password protect individual files or folders? I am working with peoples personal details and need to secure the currently unprotected files. I was thinking of using something like TrueCrypt but am unsure if this would still protect the files from access while the folder is mounted etc.....any help or advise would be greatly appreciated!

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When a truecrypt volume is mounted, any program can read the data. Truecrypt encryption is transparent to programs.

Keep in mind, that the content of a mounted TrueCrypt volume is visible (accessible) to all logged on users.

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note that switching users in Windows XP or later (Fast User Switching functionality) does not dismount a successfully mounted TrueCrypt volume

If you really want to encrypt individual files, you could use a program such as PGP

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