setting access restrictions on external drive

["J. Yoon" <supercool9000 () hotmail com>]

I have an external USB drive using Windows XP file system,
I have turned on encryption so that other users can't access the files
but they can still view and browse the folders
or even "delete" the encrypted files it if they wanted to.

I've read on microsoft website that you can only
restrict files/folders if you put them inside your Documents & Settings 
folder,
but since this is an external drive it's not possible.

How then, do I set this so that other users can't see or access anything 
inside folders that i restrict?
I would like to know if this is possible without using 3rd party software...

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