I just solved the problem.
First, I reinstalled Folder Access 2.0 from my prevoius 2.0 trail version. It didn't work for me when I followed Anurag from Joel's help. then I downloaded from CNET again and re-installed for the 2nd time. It also asked for the password. I used the same old password, then I opened my locked folders and dragged into the Folder Access icon on my Desktop. It then asked for password. After that there was an error message:
"Error password: Remove Folder: 91: Object variable on with block variable not set" it then prompted
"Folder unlocked successfully"
see below solution from Anurag (thanks so much)
KcLeo May 20, 2009 @10:28am PST.
Anurag, on Tuesday August 19, 2008 04:32:09 PM
I solved my probem by using Joel's help
reinstall folder access 2.0, place a shortcut icon on your desktop. Then drag the locked folders into the shortcut icon...if done correctly...password will be asked again. Fill in the old password, and you can open them now.