Filmed a project for a client. Client is asking for the file on DVD, but would like it password protected. Is this possibile in Sony Vegas 7.0?

Assuming the file is in a delivery format like mp4, mov, etc(ie just a file on a data DVD) you could just ZIP the file and encrypt it with a password.

Sounds the client might be ignorant of the whole copy protection thing. If he wants a file that is playable on a PC you could always zip it as said and use a password. If that's the case make absolutely sure to include the zip software on there in case the PC it's being used on doesn't have it.

Now if they want a video DVD that has copy protection tell them it's not possible. There are some tips and tricks out there to make it just a tiny bit more difficult to copy a DVD but nothing is full proof. Put it this way to your client: If James Cameron can't keep people from copying his films that he spent hundred of millions on then what chance does a videographer like you or myself have?

He has a new invention under wraps and simply just wants to put the DVD into the puter and when asked for a password...enter a password and have the DVD play....He showed me a sample it looks like it was done with Roxio...

He simply wants to keep "prying eyes employees" from seeing it.

Perhaps a password protected thumbdrive is what he needs; or a thumbdrive with the password protected file? Smaller and more robust than a DVD (fits in the pocket), and "passwordable."
Or a memory card/chip...
micro sd is really tiny :-) concealable (fits under the tongue, lol), mailable, and "passwordable."
we can all be spies with secrets now, haha :-)))

impossible to have a password protected DVD unless it's in data mode and acts like a 'drive'. Then you could use software to password protect it. If he has shown you a copy, the best thing is to ask how it was done in the first place and by whom. If he prefers it that way, then make him happy!

Perhaps a password protected thumbdrive is what he needs; or a thumbdrive with the password protected file? Smaller and more robust than a DVD (fits in the pocket), and "passwordable."
Or a memory card/chip...
micro sd is really tiny :-) concealable (fits under the tongue, lol), mailable, and "passwordable."
we can all be spies with secrets now, haha :-)))
A TrueCrypt container would work. You can even embed TrueCrypt on the device as a Portable App.