Password Protect external hard drive, it hasn't worked, why?

Hi, I've surfed around and read how to password protect an external hard drive and I encrypted it, etc as told.
However, and this will likely show my ignorance but isn't that the point of asking a question...
The thing is, it's made the disk image that requires a password, but the hard drive can be ejected and put in and accessed without a password. The disk image is protected, permanently there (so maybe now it's taking up space on my hard drive, and the actual external hard drive is the same as it ever was and can be accessed without any password.
Is there something I've done wrong, or something I'm not understanding about the concept?
Thanks in advance.
Message was edited by: NeanderCuz

Hi-
Welcome to Discussions!
Double clicking the disk image should respond with a password request.
Does yours work that way?
If so, you didn't do anything wrong, as far as the encrypted disk image goes.
That's about all that you can do.
http://support.apple.com/kb/HT1578
To encrypt the entire drive and make it inaccessible without password, this might be what you want:
http://www.truecrypt.org/

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