Hi,
To create a password protected directory, follow the steps below.
1/ Login into control panel as Web Admin. Click Domains and click on the domain name which holds the directory.
2/ Click Add Virtual Directory button, select the website in Physical Path box, hit Expand button and browse until you select the folder which is needed to be secure. Then enter the directory name in Alias for Virtual Directory box. Select NO from Allow Anonymous radio box and click Add
Virtual Directory button.
The above procedure will create a virtual directory (e.g mysecret) pointing to the folder you selected in step 2 and you can access the directory as (http://YourDomain.com/mysecret). Because anonymous access is denied, so when ever you access this directory, it will prompt you for login and password. Only those user will be able to login who have access to the physical directory to which this physical directory is pointing. To add user access to the directory, follow the steps below.
1/ Login as Web Admin, click Folder Security, select the website, click Expand and browse until you select the folder on which permission has to be set. Now click on Permissions button on right, click Add User button and
select the user and permissions required to setup on the folder. Finally click Add\Change button to apply the settings.
I hope this helps :)