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Yes, there is a way, and it is built into the OS itself, but you have to convert to NTFS to take advantage of it.
To convert over to NTFS, go to the command prompt (Start Menu -> Run -> cmd) and type in the following command.
convert x: /fs:ntfs
x being the drive letter that you want to convert
Once you have converted over, open Windows Explorer, go to the Tools menu, Folder Options, View tab, and then uncheck Simple File Sharing. Right-click on the folder, choose Properties, go to the Security tab, click the Advanced button. On the Permissions tab, you will find a check mark by "Inherit from parent the permission entries that apply to child objects. Include these with entries explicitly defined here.", uncheck it. When you uncheck it, a message box will come up with the heading "Security", click the Copy button. Click the OK button back at the Permissions window to get back at the Folder Security settings.
Remove every user name including the Administrators group, except SYSTEM and CREATOR OWNER. Click Add to add a user. In the "Select Users or Groups" window, click the Advanced button. A new window will appear, click the Find Now button. Select the users that you want have have access to the folder (yes, you can select multiple users by using the Control key on the keyboard while clicking on the names). Once you have selected the users or groups that you want to allow access to, click the OK button. Click the OK button again in the "Select Users or Groups" window.
Make sure that you set Full Access to the users or groups that you want access to the folder. Also make sure that the SYSTEM user has Full Access.
Note that if a user that has been denied access to a particular folder attempts to access the folder, Windows will come back with an "Access Denied" error. The folder will still be visible to the user without access but the user will be unable to view the folder contents, execute, view, or edit the files stored in the folder.