How does software like hide folders or truecrypt work?
I am particularly interested in a how [hide folders][1] work or how can it be achieved programatically (.net). How can I create a folder such a way that 

 1. its hidden
 2. Does not appear in search (even if hidden folders are opted)
 3. No files system structure modifications are required

How are folders encrypted. Any links or advices would be great. Thanks in advance.

  [1]: http://www.cleanersoft.com/hidefolder/free_hide_folder.htm
How does software like hide folders or truecrypt work?
===

I am particularly interested in a how [hide folders][1] work or how can it be achieved programatically (.net). How can I create a folder such a way that 

 1. its hidden
 2. Does not appear in search (even if hidden folders are opted)
 3. No files system structure modifications are required

How are folders encrypted. Any links or advices would be great. Thanks in advance.

  [1]: http://www.cleanersoft.com/hidefolder/free_hide_folder.htm