protecting sensitive files tip of the day question

[darlamc]

Ok hope this is the right place to post this question.. I receive the newletters from PCMechanic and in the most recent one I received it gave the tip on how to protect sensitive files by compressing them. Well I do understand how this is done but I can't do it for some reason.
I go to my documents, right click on an empty space (new destination) and I do not have an option to select New | Compressed (zipped) folder.. I do have where I can select WinRar Archive or Winzipfile but nothing that says compressed. I have both WinRar and WinZip installed on my computer, use the NTFS and my OS is WinXP home edition.
For those of you who do not get the pc mechanic newletter/tip of the day I have pasted below my copy of the tip that tells about Protecting Sensitive files.
Protecting Sensitive Files
If you share a computer with others, you may want a bit more protection for your personal files than Windows XP offers by default. There are two easy ways to achieve this: Create a password-protected compressed folder or encrypt an existing folder.
Password-protected compressed folders can be created on NTFS or FAT32 partitions. Opening a password-protected folder requires the right password. To protect files using a compressed folder, right-click in the desired location and choose New | Compressed (zipped) folder. Name the folder and move the files into it. Open the compressed folder and select File | Add password .
Encrypted folders are supported only on NTFS partitions. Rather than requiring you to enter a password, these folders are available only to you. If you want to encrypt a folder and its contents, right-click on the folder, choose Sharing and Security from the Context menu, click on the General tab, and click on the Advanced button. In the Advanced Attributes dialog, check the box Encrypt contents to secure data. Click on OK and then OK again. Win XP will encrypt the folder and its contents.
You won't notice any change except that the folder name displays in a different color. Other users, however, will no longer have access to the folder.
I have some files that I would like to protect this way so that when my children use this computer under their user name I do not have to worry about them accidentially accessing any of my files that are not appropriate for them to view.
Thanks so much for any help anyone can give me on this subject it will be greatly appreciated.
darlamc

[Force Flow]

I *think* that only applies to systems without winzip or winrar installed.

Try taking a look here: http://www.pcmech.com/show/optimize/677/11/