Windows 7: Hiding Folders/Files

Okay, so maybe I'm just over thinking here, but say you hide a file, sure you can access it through changing the folder options from show to do not show. But the problem is so can anyone else, so whats the point of hiding stuff unless you're hiding it from someone who is a novice at windows 7. My main goal here, is to have a folder, which is password protected, and have it filled with things that can not be accessed through any means other than entering the correct password and therefore entering the folder. I basically want it to be completely impossible for someone to access the contents of the folder without the password. Thank you in advance.

The purpose of hiding files/folders is to like you said, stop people seeing them or to make things look a little tidier.

If you want to password protect a folder read #Post 20, last post on this thread

These tutorials may also help:
File and Folder - Add "Hide" and "Unhide" to Context Menu
Show - Hide Hidden Files - Add to Context Menu
Hidden Files and Folders - Show or Hide

Use 7Zip. It works.
How to encrypt ZIP files securely using 7Zip