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My friend has a little sister who uses the same computer he does to do his homework, pretty hard stuff too, mostly projects, anyways, his sister's developed a habbit of wrecking his stuff right before it is due.
So, how exactly do you encrypt file on a windows XP machine?

You make a new user files for her to use and you do not tell her your password.

there are programs that hide important files and stuff like that.

not helpful, his parents treat his sister like a little angel and they have the administration account.
Trust me his parents are oblivious idiots.

And they don't give them each there own account?

Set a trap. When she's not home, get your friends parents to watch you type an essay. Tell your friend to wait, then check later with your parents. If it's gone, BUSTED.

If you have windows xp professional i thinkall u do is make a folder
then, right click it , go to properties, then click on the general tab then u c a button that'll say advanced and then you'll c a something that will say encryt contents.
OR you can make a compressed folder then put ur stuff in it then right click somewhere in the folder then you will see something thatll say add a password.
But thats all i know

She has admin, right? Make a folder somewhere where she never goes (like 10 folders into the winnt systems folder), and create your files there. Make online backups.

Like C:\WINDOWS\System

I'd reccomend online backups, a gmail account works quite well for pretty much anything, make the password something she won't know, and turn of anything that might log it.
Alternatly, give her a taste of her own medicine, delete everything in her account whenever you get the chance, and blame it on a virus.
I beleive that microsoft office word also allows for password protection of word files, its somewhere in there, check the help document.

%SYSTEMROOT%\system32

Make a folder that starts with an underscore "_" so it appears first when sorted by name. Then just stick stuff in there.

okay, i'll pass it on.

Why first? She'll check that first. Make it some obscure technical name, like 'Operating System Crucial Files'

yea just save them to the systems32 folder, and name them as OSDat or something like that, or VDrivers. Something that wouldn't be expected.

Lol there's lots of other ways to mess around with a little sister. Lol you could download like a program that randomly pops up scaring the hell out of her

http://www.deviantart.com/deviation/25381979/

if you've ever played F.E.A.R. you'd know about this one.

Or you could just move some items in certian data folders of the programs she uses around so they don't work anymore. Or mess with the .exe files to make it so when she clicks on something something else happens. OR you could change the desktop icons. Like give internet the MyComputer icon ect.

That alma program is.....awesome, too bad it has a taskbar icon

Google 'Pranks'. They have some wicked stuff on there, like one that makes the mouse cursor dodge any buttons, so you cant click, or where desktop icons randomly move one pixel at a time. It's endless xD!

In Microsoft Word, when you save click on the Tools bar at the top of the save window and click on the General Options part. Then at the bottom of the General Options window, you can make it so that you need to type a password to open and edit the file. I'm unsure if this include deleting.