If you need to hide a folder and even create a false domain this instructable has step by step instructions for a Windows XP. PLEASE BE RESPONSIBLE
Step 1: Making a Folder Invisible
To start off go to your desktop and right click anywhere on the screen. Click new and then choose folder. now place your folder where you want it to be. i sugest having the folder near the bottom of the screen because it is harder to locate there. Now right click the folder and choose rename. Hit alt and hold it while typing 0160. Next right click the folder again and choose properties. Now choose customize and then click the change icon button. look through the icons until you find a blank space, choose it. Hit ok. Now your folder is invisible. to open it double click that space.