MAJOR Update:
I’ve pretty well ended support of this. I’m not intentionally avoiding emails or comments, I’m just out of time and need to make you aware there’s a better way.
I’d like to encourage you *not* to use the WP-Password Plugin. Here’s why: It doesn’t protect items in feeds, it can be broken by future wordpress versions, it doesn’t protect media/videos/images in your feeds (only pages powered by WP), and at last check, changing WP to do what I want the plugin to do really jeopardizes it’s security of all other things WP. I just don’t want to do that to you.
Instead, I recommend using .htaccess to protect the directories you want people to see. Here’s a good tutorial on it: http://www.javascriptkit.com/howto/htaccess3.shtml
If I am going to do anything else with the plugin, it will be a re-write to help people create their own .htaccess rules.
Minor update to the WP-Password plugin I’ve let languish. I think I’ve fixed the redirect bug.
http://www.broome.us/wp-password/wp-password_0_6_1.zip
You’re welcome to try it out. Update the comments with any bug reports, ideas, complaints, etc.
Future plans might involve integrating WP 2.7 (and later) internal password protection to provide a better UI, handling it’s inherent per-page/post nature better (Default value, etc). Preliminary checking looks like it’ll take some changes to the WP Core to really work well, but I’ve been known to think on problems like that slowly for a while and suddenly come up with a solution… we’ll see.