Here's an easy step by step procedure how to hide any partition/drive:

1. Go to Start > run > type "diskpart".

A DOS window will appear with following discription.
DISKPART>

2. Then type "list volume"

The result will look like : ------

Volume ### Ltr Label Fs Type Size Status Info
--------------- --- -------- ---- ------ ---- ------ ----

Volume 0 F CD-ROM
Volume 1 C Window_XP NTFS Partition 7000MB Healthy System
Volume 2 D Softwares NTFS Partition 8000MB Healthy
Volume 3 E Songs NTFS Partition 8000MB Healthy

3. Suppose u wanna hide drive E then type "select volume 3". Then a
message will appear in same winwods { Volume 3 is the selected
volume}

4. Now type "remove letter E". Now a message will come { Diskpart
Removed the Drive letter }
sometime it requires the reboot the computer. Diskpart will remove the
letter. Windows XP is not having capabilty to identify the unkown
volume.

Your Data is safe now from all unauthorised users. To access the
content of hidden Drive repeat the process mentioned above. But in
4th step replace " remove" to "assign" i mean type "assign letter E"

Good Luck