External Hard Drive security question

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quiq

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I found a great black friday deal on a 250gb Essential Series My Book hard drive....Would be my first external HD

But I was wondering if theres any software (preferably free) you can install on it yourself to prevent unauthorized people from accessing the data, like lets say if it got stolen...Can I at least make it so you have to enter a password to use it? Can windows XP do that already or do I need 3rd party software?

Looking at the western digital's website, it doesnt look like it comes with any software except google. At least some kind of password would be nice.
 
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