When I set a password on a Gallery folder, the user is not asked to enter a password, and it goes ahead and displays the list of images. It has the word "Protected:" in front of the page title.
At the bottom of the page, it asks to enter the password! But all the images are already displayed.
I just started with the Eazyest Gallery, and this password thing worked in my earlier tests. Later I installed an update to my theme (Mantra 2.0), and I discovered the problem. Coincidence?