Okay, here’s how to enable the Encrypting File System on a computer using NTFS. Log on to your user account and open Windows Explorer. Right click the folder you would like to encrypt and select Properties. On the General tab, click Advanced and the Advanced Attributes dialog box will appear.
Select the Encrypt Contents To Secure Data checkbox. If you’re encrypting a folder, Windows XP will enquire whether you want to encrypt all the files and subfolders in that folder, or only the folder itself. Make your choice and click OK to close the Advanced Attributes dialog box. Click OK again to close the Properties dialog box.
From now on all files inside the folder will be automatically encrypted and filenames will appear green in Windows Explorer. Any unauthorised users trying to access your encrypted files will receive a User Does Not Have Access Privileges message. Note that if you wish to share encrypted files, other users may be granted access by returning to the Advanced Attributes dialog box.