My friend gave me a tip which is very useful. By using this tip, you will be able to completely hide your folder. Your folder will not be seen, even if the option of "Show Hidden Folders" is enabled. Also, your folder will not be detected by search option of Windows XP.
The trick is simple:-
Suppose you have a folder named "Max" and the folder is located in C: , the location of that folder would be C:\Max.
Go to Command prompt. Simply type "cmd" in run(of course without the quotes).
Type "attrib +s +h C:\Max" (of course without the quotes) and the folder becomes invisible. To make the folder visible again, simply type "attrib -s -h C:\Max".
My humble suggestion is to try this trick on an empty folder initially, in case something goes wrong. Caution- Do not forget the location of the folder, you have made invisible, I suggest that you save the location of the folders, you intend to make invisible. This trick is applicable, not only to folders, but files(all types of files) also.