Since this may be your first time creating one, it's probably best to start with a new folder. I've called mine "Test folder" and put a few files in there. (Note: Just because this folder will be hidden, doesn't mean it has limitations. You can put anything you'd put in a normal folder in there.)
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L
This is NOT a secure way to hide/protect files from anyone with a working knowledge of Windows file systems. It might hide it from some of the "old folks" but not from people with even a minimal knowledge of the OS.
If you're really concerned about protecting files you should look into encryption, even the Windows built-in will give you some protection (if you're willing to trust "The Evil Empire").
Given my cynical nature, (some would say 'paranoid' - I usually point out that 'even paranoids have enemies!") I have more trust in "open source" alternatives where independent eyes can review the code for back-doors and other such crap. "True Crypt" (truecrypt.org) and "GNU PG" (gnupg.org) are just two examples and there are lots of others out there. People just need to be cautious about what they download; if you find something on Sourceforge (sourceforge.net) or even cNet Downloads (download.cnet.com) I'd trust it over any random web site. But, once again, I'd choose "open source" for the reasons stated above.
That said, don't let my criticism discourage you from future postings. All legitimate efforts are welcomed and embraced. It wasn't a personal reproach but rather a "heads-up" for anyone who might not have the knowledge to avoid the pitfalls of this method.
Always willing to add my 2¢... take it for what it's worth. ;-)