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how can I create separate folders for photos and videos and can I password them
Folders can be made on the SD card for storage of any content, this can be done via PC or done by downloading applications from the Android Market such as Astro File Manager, In regards to creating a password for a file again this would be related to a third party application from the Android Market.
you can use apps like this
https://market.android.com/details?id=com.phasip.camerafolders&feature=also_installed
or this
https://market.android.com/details?id=com.kii.safe&feature=search_result
this is a really cool app ( I really like it )
https://market.android.com/details?id=com.mobbeel.signature&feature=search_result