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HideNSeek is probably the best app for this, well worth the $99, there is a barcode link to this is
http://androidforums.com/htc-hero/20511-htc-hero-tips-tricks-useful-apps.html

I use the ES File Explorer and if you start a filename with a full stop (example: .hidden) and then folder name 'hidden' wouldn't be seen by the file explorer or by the Android software.