Password Protecting a Folder?

[mislissy]

Under the Album Password section of the Documentation it says this:
Use this option, for example, to set up an album for your family members only by specifying a password that only they can come up with answering an additional password hint (e.g. "What was the maiden name of aunt Emma?"), or you could decide to send the particular password to specific friends, family or business associates by email.

Whenever I try to set it for a password, it automatically sets it to "Me Only" ~ which I also read in the documentation that is normal.  How then do we set it so that we can setup a password as described above?