If you password protect your images folder, and have an HTML page that embeds that image into the page, the user trying to view the page would have to know the username and password to actually see the image.
What will happen is the page will load, then they will get a login prompt and if they enter in the username and password, the images will load on the page. If they cancel the login, the images will show big red "x"s and missing images.
If you don't want someone to see all the available images in your images folder simply put a blank page called index.html or you can use .httaccess rules to prevent directory listings or many other things. Another option is to use the index manager in cPanel which will allow you to turn directory indexes on or off for a particular directory (folder)
All it is essentially doing is writing the .htaccess file for you in my above option.


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