Good App to Password protect folders?

You can use the one built into OS X, I think its called File Vault, which encrypts them.

It can be found in system preferences under "security"

:)
 
I could write a long article about this.

What you use all depends on the level of security you need.

You can create a password protected encrypted disk image with your folder in it using Apple's Disk Utility (part of OS X), you can create a compressed archive that is password protected using Stuffit, you can password protect and use heavy-duty encryption on your folder:

GNU Privacy Guard (free)
http://macgpg.sourceforge.net/

Crypt (free)
http://www.dekorte.com/projects/shareware/Crypt/

Or you could simply make the folder invisible and password protected with:

Hide-Out! (free)
http://www.space-net.co.uk/projects.html
 
You can use the one built into OS X, I think its called File Vault, which encrypts them.

Just be aware that if you are backing up with time machine the only way Time Machine will back up a file vaulted user account is when you are logged out of it. Also with filevault on you can't transfer your user using migration assistant, you must be able to log into that account to turn filevault off before transferring data. That's where the gotcha is because what if you can't log into the account? The good news is though in a no boot situation, as long as you know the filevault password you can mount the disk image, but you will have to drag and drop the data to transfer it, as opposed to being able to use migration assistant. But the point is strong considerations should be used before using filevault. These are also just a few issues with filevault, at least ones I see often.
 
I'm with djackmac on this one, sort of -- I would recommend against using FileVault unless you meet one of the following criteria:

1) You're an international spy.
2) You store unencrypted credit card information for thousands of people on your computer.
3) You work for the FBI.
4) You job requires a high level of security for the files you work with.
5) You are a conspiracy theorist.

For most casual users, FileVault is overkill. A simple password-protected disk image would suffice.
 
I should of said why I need it. I will be taking my MacBook to an Apple service Center for iSite repair. I just want to lock out a couple large folders that have sensitive information. I think the Hide-Out! v.2.1 should do it.
 
If you're taking your laptop in for repair, I do not recommend leaving any of your files on the hard drive. Back up what you need -- during the repair process, your operating system may be reloaded for any number of reasons, including:

1) Ensuring that any errors/malfunctions are not software-related
2) Ensuring that the hard drive itself is in good, working condition
3) Ensuring that some add-on you've installed is not causing the problem

Even if your repair is strictly hardware-related, like a cracked case, you never know -- your operating system may be reloaded by the tech servicing your computer, and you should ensure that any files that you need are backed up elsewhere. My MacBook went in for a cracked palmrest and the original operating system that my computer shipped with (10.4.something) was reloaded (even though it isn't the original hard drive!). Take every precaution to ensure that something like that will not affect you.

I don't want to come off as rude, but not backing up your files before sending your computer off for repair would be... uhh... mucho tonto. ;)
 
Just do a backup with Time Machine and wipe the drive. Don't even load a clean install of the OS when you take it in for service. Just let them know you wiped the drive. If they need to load a system for testing they can do that or just boot to an external if they need to. Get it serviced and restore from your time machine backup when you get it back. We have some people that do that when they bring their machines to us.
 
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