Hiding your folders helps you to avoid visibility to your personal data in common, Even Windows have some hidden files in your computer in order for smooth functioning to avoid damaging of that data which can be technically destructive to Windows. So the same concept can be applied to protect your files too. In short important System Files are always kept hidden In Windows Directory. Now this tutorial below will show you how to hide a custom folder in Windows XP. ” -> ” means the next step
Right Click on the selected folder and Click on its Properties
You will see the Properties of the Folder -> Select the option Hidden
Click on Apply to make the changes take effect
Click on the Second option i.e “Apply changes to this folder, subfolder and files” so that all the subfolders too automatically get the same effect -> Click on OK.
Now the folder will not be seen on your Drive or Desktop or anyplace where it actually was. But before doing so we recommend you check some stuff in your windows because what happens there might be people whose service packs are not updated So we recommend you first go through this
Go to Start -> Click on Run -> Type “Control Folders” and press Enter
If you get a window called Folder Options you can continue your hiding process.
Now Back to unhiding the folder which you have hidden you need to follow the above step to open your folder options or another way to open folder options is By going to
Start -> Control Panel
Click on Folder Options settings as below
Now you might be seeing an Option there below Show hidden files and folders just select that check box it in order to view your hidden folder and click on the Restore Defaults button to make changes unchanged.
Hiding your folder without using any folder options and without letting people know that there is a hidden folder inside this drive 
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