Windows 7 - Encrypt files in W7HP

Is there a way for me to encrypt files in Windows 7 Home premium? When I go to Properties > General tab > Advanced, the option to encrypt it is greyed out.

If possible, without 3rd party software please. If not, a link to some good free software.

I recommend truecrypt it's free software. You can encrypt os drive, data drives or folders.
TrueCrypt - Free Open-Source On-The-Fly Disk Encryption Software for Windows 7/Vista/XP, Mac OS X and Linux

if you want to encrypt without 3rd party you need to get higher version of windows 7 because i think home premium doesn't have that functionality

Encrypt shows when I right click on a file in Windows 7 HE, but I never have used it as I prefer 7zip.
http://www.7-zip.org/

Windows only has encryption capabilities in the Ultimate and Enterprise versions of Vista and Windows 7. You can either upgrade to one of these, or use 3rd party software. As vaidas3 recommended, I would also suggest you use TrueCrypt. It has many different options - encrypted partitions, hidden encrypted partitions, encrypted file containers etc.

TrueCrypt - Free Open-Source On-The-Fly Disk Encryption Software for Windows 7/Vista/XP, Mac OS X and Linux

Tom

I've been using True Crypt for a couple years now. It is, in my opinion, an absolute masterpiece. Not only is it free and open source, but it also has never failed to do exactly what I need it to do.

I've partitioned my HDD to where all of my personal files reside on a separate drive from windows. That drive is encrypted by True Crypt and automatically prompts me for my password after I log in to Windows. Without the password (and optional key files) it is impossible to access the information on the drive.

True Crypt also has the option to encrypt your entire operating system, though I have never tried that approach. By using Resource Hacker, I've been able to customize the system tray icon as well as how the password prompt displays when I log in.

True Crypt - HIGHLY RECOMMENDED