Encrypt A Folder

Running Vista32 Home Premium so i don't have the built-in windows encryption.

I'm looking for a preferably freeware app that can make any folder i choose encrypted. Not hidden like truecrypt does with container encryption. The folder would look the same but when double clicking, access is only granted after entering a paraphrase. Files could be dragged & dropped into the folder without having to input the password. Or this - the ability to designate a folder (my choice) where any files dragged and dropped into it are automatically encrypted. Can access the folder but access to the files needs a paraphrase to be entered.

Programs like WinRar, 7Zip fulfil some of my needs but don't work in other ways. Have GPG4Win installed but it just stalls when trying to encrypt folders (files work though)

Here is one example of what i am trying to accomplish - in my email client (trulymail), i wish to create a storage folder to drop any emails i want to save into it protecting them with encryption. It would be easier doing it this way than say putting the entire trulymail appdata folder into a truecrypt volume and having to mount/dismount it.

Any thoughts?

Thanks!