It sounds like you set access rights for users to your hidden folder and or other flags...
see pictures...
As you can see i have 3 folders that i'm severing...
templates (which is hidden)
a secure uplaod folder
a secure test folder...
If i do some funky things with the flags and permission i get your issues, in which i have found that i need to "start over"... to fix.
Solutions:
Re-download the latest build.
(preset up you website for easy of access..IE setup a structured folder {c:\webroot\hfs.exe} c:webroot\realfolder1...etc...)
Before adding a anything to hfs:
(if your are using a template, add it now as i recomend Live template 3.0, there are better ones out there and others...)
The very first thing you should do is: (Create Accounts) via opening the accounts page and create your users...
Now add the real folders that you wish to share (helps is there are structured in the paths IE setup a structured folder {c:\webroot\hfs.exe} c:webroot\realfolder1...etc...)...
Now wee setup flags/hidden folders:
if the folder is hidden , but need to be accessed for file! set these flags:
see picture
(*note: even if a client has the path to the hidden folder, if you don't set any html templates, it will default to the next folder up, in my case, root/ my home page...)
if you don't want any one to be able to download it
check the "no download option"
if you want a user to be able to access it once in a while, you will have to add that folder again...(either change its name or etc...) revistit this post..:
http://www.rejetto.com/forum/hfs-~-http-file-server/no-download-11246/msg1058499/#msg1058499i believe it is a http file permissions/flags issues on your end...
You should never have to send the passwords to connect/download!...