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You can get this functionality (not well, but it works for
what you need) By using a .htaccess file.
You will need to put the same file in the folder with the
images, and the mirrored folder in album-data and images-cache

It will pop up the standard ask for a password to view
whenever you hit a gallery page that would include that
folder though. So it is best to bury it one more level. So...
Proofs/Company/Project. Then whenever someone tries to go
to company, they will be asked for a username/password
(called from when IDS tries to load an image from
image-cache for the Project thumbnail)

Hope this helps, since the project is pretty dead at the
moment. :P Too bad, I have over 50 gigs of photos indexed
through IDS, moving it to something else is nearly
unthinkable.

I have also added a hack to my IDS installation to
automatically watermark all resized images. Which might
intrest you if you are using this for proofs etc.

Richard Greenway
www.fenchurch.org