I need a solution to encrypt certain folders, so that only certain groups can see them (E.g. directors, personnel etc.).

Normally, I would say just set the rights, but the director doesn't want this, he wants the folders encrypted and only a limited number of user will have the key / access to the folder.

They tried TruCrypt, but once it is mounted, every user can see it. Telling him that restricting the rights, so that only those with the relevant rights can see it is pointless - and I can see his point, anyone with the admin password can reset the rights to the mounted Trucrypt volume.

Is there an easy way to do this? Is EFS the right way to go?

Zipped with password protect?

I've used SafeIT before which seems quite good but might not be suitable for multi-users?

Something like this? http://www.safeit.com/products/fileenc/index.asp

Providing you've got a PKI in place then EFS would be perfect for this