Microsoft just released a neat little utility called Private Folder 1.0. It’s unsupported and will only run on “genuine” Windows XP.  What it does is give you a new folder called “My Private Folder” that is password protected to prevent anyone who may be sharing your computer from accessing the files in that folder.  From their web site:

Microsoft Private Folder 1.0 is a useful tool for you to protect your private data when your friends, colleagues, kids or other people share your PC or account. With this tool, you will get one password protected folder called ‘My Private Folder’ in your account to save your personal files. Download and have your private folder today!

No word on what encryption it uses or what happens if you forget the password.  Download it today and give it a try!