You set up permissions and auditing on the Security tab, which you can find by viewing the properties for any drive listed in Logical Drives.
The Security tab gives you control over which permissions you can allow or deny for groups and users. For example, you can let one user read the contents of a drive, let another user make changes to the drive, and prevent all other users from accessing files and folders on the drive.
You set up auditing to detect and record security-related events, such as when a user attempts to access a confidential file or folder. When you audit a drive, an entry is written to the Windows 2000 security log whenever the drive is accessed in a certain way. Using the Security tab, you determine which objects to audit, whose actions to audit, and exactly what types of actions are audited.
You can change security settings only on computers for which you are an administrator. In addition, you can only change security settings on drives formatted to use NTFS.