Guys, this is really, really, really, really, bad/basic security. I'm sure you've heard of the term "security through obscurity"? Well, this barely even falls in that category.
I wrote a simple little app in fairly short order that was able to "unlock", and I use that term loosely, all of the files and directories that this app "locks." There's not even any encryption used on the files and directories that it attempts to hide. All I did to "unlock" them was to move them out of a specially named path. So this is basically not worth your time, unless you want security through obscurity, because, if I can "unlock" things, it's a sure bet that someone who knew what they were doing would have your files in no time. You should never trust anyone who doesn't detail the "powerful and easy" protection scheme of an app. If they won't divulge the info then you know it's security through obscurity.
If you want to try it yourself, you can get my little app at
http://www.geocities.com/redllar/unlockdir.zip Just put it in the same directory as the lockdir.exe and then run it and follow the prompts. If you choose to "unlock" the contents you'll end up with a unlocked subdirectory with the stuff in it. Then rerun lockdir and choose "cancel decrypted" to get rid of what lockdir did.