Requiring user credentials for a shared hard drive?

Question

I am sharing a second hard drive with others on my WiFi network. This is primarily because it's easier to maintain PCs when files are stored on a central hard-drive.
I would like to know how to assign usernames and passwords to folders on this drive?
Secondly, is it possible to create a 'public' folder (ie one that everyone can access without usernames/passwords)?

Does bostonianinmo's answer refer to XP user accounts or other user account types?

Answer 1

http://www.techtutorials.net/

Answer 2

In a workgroup environment, anyone accessing a shared folder will be prompted for credentials; there's no way around that even if the folder is shared with "Everyone" access. You will need to set up user accounts on the machine with the shared drive. You can then use those accounts to restrict the access to folders on the shared drive.