wether the OP can be "trusted" or not is redundant- this is a public forum and posting links to "password recovery", or whatever it was - programs is akin to posting password cracking program links.
In any case, what I was trying to make clear to the Original Poster was that a Folder cannot be password protected via the built-in functionality of Windows XP; therefore I was hoping perhaps for some clarification as to how this was done. (A third party program, perhaps?). It could also be using Encryption Using the "disgruntled" users account, which means only their account or a designated recovery agent can recover the files.
However I would expect in that case that the query would have been regarding the user account password... thus my curiousity re: third party programs.