Short explanation in case anyone needs to know
Image is taken of System drive C:\
"Folder Hider" installed, and existing folder C:\Private is hidden
also create and hide folders C:\Secret and, on USB, F:\Keep_Out
Everything is hidden that should be hidden
From here on forwards, if drive F:\ is connected to a different computer, F:\Keep_Out is visible.
Restore previous image :-
C:\Private reappears exactly as it was before being hidden - as expected
C:\Secret just does not exist - no security breach.
Drive F:\ was not restored so \Keep_Out still exists, and is no longer hidden because the Operating System is no longer blindfolded.
OOPS
I wondered if magic Folders would work on FAT32 so I used your link.
I got no relevant information from XP help at
http://www.pc-magic.com/mfxt.htm.
Relevant information from 95 help at
http://pc-magic.com/emft.htm#t25FAT32 - NO PROBLEM
Removable drives
You shouldn't use Magic Folders or EMF on removable drives. Although the files and filenames would remain encrypted and scrambled on other computers (if you're using EMF), the folders and files would not be hidden, for EMF or Magic Folders.
In addition, Magic Folders and EMF don't mark hidden folders, they just filter file requests against your list of hidden folders. Therefore any removable media with folders with the same name as the one you hid would have their folders hidden as well, and in the case of EMF, their files would be encrypted too. We may in a later version include the disk ID or volume name in the hidden folder list, but we haven't done that yet.
That supports my fears and warning.
NB Even Drive C:\ is removable, and hidden folders will be public, should it be taken out of your P.C. and connected to another - e.g. because you took it to a computer service man, or because your computer has been stolen.
Regards
Alan