You can password protect writings in MSWord and MSExcel by doing the following :- Click File > Save As.In the Save As window click Tools > General Options.Fill in `Password to Open` and `Password to Modify`. QED.
Setup separate users for the PC, and log on with a password. One for you and one for the kids. That won't stop them if they are curious and start looking around, but I think it will hide your My Documents folder. It will also mean that they can mess up the start menu and desktop to their hearts content without changing your settings.
If you want SECURE get a separate hard drive and use a drive caddy. One drive for you, and one for the kids. If they download a virus, it won't mess up your work.
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