To Password Protect a Microsoft Word File, choose Save as from the File menu. The following dialog box will appear:

Click on the Options button. The following dialog box will appear:

Enter a password into the Password to open: field. The password will appear as a series of asterisks. Do NOT forget your password: there is no way to recover a password protected document if you forget your password.
When you click on OK the program will produce the following dialog box:

Type your password again. This is a double check to ensure you can type the password correctly twice.
In Excel, choose Save as from the File menu, and, as seen above, click on the Options button. The Excel options dialog box has a slightly different appearance:

Enter your password into the Password to open: field. When you click on OK a confirm password dialog box will appear.
Just because Microsoft wants to make your life harder, Word 2000 does not have an Options button in the Save as dialog box. The Password protection dialog box is hidden. See the little Tools button in the dialog box below?

Click on Tools and then choose General Options from the menu that appears. From here the process is similar to the Word 95 and Word 97 process.
These two programs have dialog box sequences similar to Word 97 above.
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