From Secure Data Software:
Password Shield protects your computer by running as a service in Windows. The Password Shield Service detects key loggers and blocks them. Password Shield also installs a toolbar in Internet Explorer and a browser extension in Fire Fox. The toolbar and extension work with the Password Shield Service to block or allow modules from running in your web browser. You control which modules to allow or deny when the Password Shield screen prompt detects a module running in your browser. The toolbar and extension also allow you to save passwords, form data, and your browser history in an encrypted file that only Password Shield can read or write. This protects your information from being read by spyware and adware that look to the default locations in your computer for autocomplete form data and passwords. Version 1.0 is a re-branded Phantom Pass.
It is not actually very secure, and does not lock folders, it just hides them. This means there is a whole host of ways to access them still (either through Linux, or even via specialist folder browsing software on Windows). This is especially a bad point as it costs allot (maybe as freeware it would be suitable for kids or hiding stuff from inexperienced users). If you want to lock folders, use BCArcive as this actually encrypts your files safely.
The goal of this software isn't to secure or lock any folders. Phantom Pass takes the information you type in a web form, and saves it to an encrypted file that only Phantom Pass can decrypt. This is an excellent way of preventing Spyware and trojans from reading your saved passwords and browser history. If you are looking for a program that locks folders, then perhaps we should take a look at this option in version 2. And, $29.95 for a 3-user license realyl isn't that expensive.