Is there a way to put a password lock on folders?
I need it so when you open the folder you're immediately prompted to enter a password, without even being able to see the folder's contents.
There may be third-party software that can do something like that, but I suggest you avoid it. If you're running Lion, use FileVault.
OS X Lion: About FileVault 2
Click here and follow the instructions.
Mounted disk images are not backed up by Time Machine.
Once I've created the encrypted disk image how I use it to password lock an individual folder?
The password is on the encrypted disk image.
Any folders that you wish to have password protected you place in the encrypted disk image.
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