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Here is the official word from Microsoft TechNet, The C:\Users folder is shared when any sub folders from C:\Users\<username>\ is shared. The article is stale and mostly unhelpful, but worth knowing to complete the story.
How to Make Folder Private in Windows XP. Making folder private in Windows XP would restrict others from accessing that private folder. It would also disable folder sharing feature. 1) Open your Windows Explorer and locate the folder which you want to set private.Right click the folder and click Sharing and Security.2) Your folder Properties will appear. Select Sharing tab and tick Make this folder private, so that it canât be accessed by others.ote: When a folder became private, you canât share the folder and subfolders till you disable this private folder option. Note: You cannot make your folders private if your drive is not formatted as NTFS. If you don't want to make folder private, have a look on this file sharing.