The easiest way to set up a folder to be hidden is by using the Quick Start Wizard. You can also achieve the same result by using the commands of Folder Guard directly, as described below.
To hide a folder with Folder Guard, simply assign the hidden attribute to the folder in question. You can do that by selecting the folder in the main window of Folder Guard, and then choosing the Visibility - Hidden command from the Protect menu. (You can also use the toolbar or the right-click menu to use this command).
For example, if you want to hide the folder named A Private Folder located on the C: drive, select that folder, and click on the Hidden button on the toolbar:
Notice that after you have assigned the hidden attribute to the folder, its icon became dark, to indicate its hidden status. (If you decide to remove the attribute you have just assigned, simply click on the same toolbar button again, and the attribute will be removed from the folder, or use the Visibility - Default command on the Protect menu.)
In addition to the hidden attribute, it's also a good idea to protect the folder with the no access attribute as well, to make other users unable to open files from that folder even if they cannot see them (such as through the previously created shortcuts, for example). When you do that, the "stop sign" icon appears in front of the folder, as shown on the screenshot above, to indicate the access restrictions of the folder in question.
Now enable the protection, and the folder you've made hidden will become invisible to Windows Explorer, Windows applications, MS-DOS programs, command prompt, as well as to the Open/Save As dialogs used by the applications to open and save documents. All files and subfolders that might be located in that folder will be hidden, too, until you disable the protection.
Note that you can set up the folder to be hidden for some users and be visible to others: simply select the user account in question in the User List, and then apply the desired visibility attributes to the folder.