Windows Server 2008 - password protect network folders

Question

I was tasked to password protect a few folders that are being shared in the network.  The folders are stored in the server (that i have admin access) and anyone in the network have full access to the folders and the files inside those folders. The computers linked in the network have different OS - 3 running vista, 2 running xp and 1 windows server 2008.  Anybody in the office can use the computers without being prompted for a password (except the server) and the folders are accessible through any of those computers.
The following are my questions:
1. Is it possible to password protect folders shared in the network? If so, if someone wants to access those password protected folder through any of the computers connected to the network, will they be prompted to enter a password to be able to access it or the system will just say "access denied?" If so, please give detailed instructions on how to do it.
2. If it is possible to password protect network folders, is it possible to put different passwords on each folders? If so please give detailed instructions on how to do it.
3. If it is not possible to do any of the mentioned above through windows, is it possible with the use of a third-party software? If so, what are those third party software?

Answer 1

Hi All,   First time on this forum and am finding it very interesting (sorry about the proposed as answer above.. hit the wrong key).
I found this topic particularly interesting and am looking to do a similar thing but seemed to have gotten around it quite easily (if I am on the same lines as greggync777 that is).
My problem is this I have a Home Theatre Network set up in my lounge to several locations around the house with around 8 gb of videos/music/pics etc, all works fine on connected pc's with WMC (all using Windows 7) and all is shared by family for entertainment.
I also have a Seperate workstation where I do my work (video editing) which involves storing considerable amounts of footage and more importantly all the work files/folders all of which is confidential, at the moment is also on a seperate pc which also houses 8 hdd with around 6gb of ever growing video information.
My point is that both these PC's ( HTPC and my WORKSTATION) are a bit too noisy despite having installed the best I can afford fans/Samsung eco green hdd's. My desire is to build a main super server running WHS 2008 (The size/Cooling/Noise etc is not a problem due to where it will be located). My main concern is Security with so many in the family having direct access to the Server so I want to restrict which files/folders they can subsequently access once there.  I want to be the only one to have access to my work from my PC and everyone else denied access.  I have set up a test rig running WHS08 and have set up access with several PC's using passwords for the server etc which was straightforward after creating a user account for them on whs08, therein laid the problem of then how to keep them from accessing my side of the server which is when I hit up on this thread after much searching. Following one of the suggestions above I went to the folder in question (in my case this will be a plus as all my work will be in one main folder with several thousand sub folders) to the security tab/permissions etc and firstly removed access to everyone except the server administrator. I then granted access only to one PC on the network - the one that is my workstation together with a password ( I meant to say upto this point everyone I had given access to the server could access my test folder), went back to my PC and was able to access as normal after entering the password. I then went to every other PC on the network (that has access to the Server) where I am pleased to say all denied me access to my folder. (my work pc by the way is running XPsp3). Not sure if it will work for Greggync777 or if it what he is looking to do but it did for me. I apologise also if I have rambled on a bit for my first thread.
tks   Dave