Specify whether the files for the active feature (the feature selected in the Setup Design or Features view) will be encrypted. Encrypted files can be read only by the InstallShield engine (or by an expert code-breaker).

If you plan to offer end users the option of running your application directly from the distribution media, do not encrypt the relevant files. InstallShield decrypts files only during installation to the end user's hard drive.

Encryption is not the same as password protection. Encrypting a file scrambles it so that if someone opens it in a text editor, they cannot read strings and other data to get confidential information about your application. Password protecting a feature prevents it from being installed by someone who does not know the password. You can encrypt a feature's files or you can password protect the feature—or, for maximum security, you can do both.

If a feature's files are encrypted but neither the feature nor the setup is password protected, the feature can be installed by anyone who obtains your distribution media (or a copy). If a feature is password protected but its files are not encrypted, someone can open the files in a text editor and read confidential information—possibly including the feature's password.