There are two types of passwords.
1) A Soundlist Password will force a password challenge dialog any time you try to open the Sound List file. Each Sound List can have its own unique password or no password. Set this by File > Sound List Password.
2) The Program Password is used by Sound Mill to enforce authorized program operations. For example, changing the program Show Mode setting will force a verify password dialog when the Program Password is set. Set this by Options > Program tab.
Passwords provide a way to help protect your Sound List intellectual property from unauthorized use. Or they can prevent potential tampering of the Sound List on a shared computer. When set, you cannot open the Sound List with Sound Mill without entering the password. However, the contents of your Sound List are NOT encrypted. So do not store trade secrets in description fields thinking the password protects them from prying eyes. Text you enter into text fields can still be read by opening the Sound List file with a simple text editor.
Tip - Write down your passwords and store them in a safe place.
Passwords are case sensitive and allow special characters (any character you can type on the keyboard).