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I will only add that some avatar and objects makers ask that their files be PASSWORD protected when zipped and placed on your OP.
Not all zip files should be passworded on the OP so here I explain which ones should and should not be password protected.
Avatar files (the .RWX .COB and .X files) should be passworded when zipped before being uploaded.
That Avatars.DAT file should NOT be passworded when zipped.
Model files (the .RWX and .COB files) should be passworded when zipped before being uploaded.
SEQs and SOUNDS should NOT be passworded when zipped.
Remember MP3s do NOT get zipped anyway.
Texture MASK files may or may not be passworded when zipped in my opinion.
Again, remember JPGs do NOT get zipped.
The password used is then placed in the worlds Object Password field in world features.
NOTE: The 5 astericks (*****) that show in that field are a fixed length mask regardless of how long the actual object password is.
Why not zip the Avatars.Dat, SEQs or SOUNDs?
They all appear in the browser cache in normal unzipped form anyway, so passwording them is 1. a waste of time practically, and 2. could allow someone with knowledge to crack the password for the avatars and models.
As for the BMP masks, they are of little value themselves even if they are not passworded (again in my opinion).
When uploading a model or avatar set to your OP, just be careful to put the texture mask ZIP files (those with BMPs inside) in textures, and not in Avatars or Models.
Remember that ALL those ZIPs (avatars and models) that are passworded must have THE SAME password, as the world server can only have one object password in use.
On a side note, if you are a Universe Admin and setting up a PAV/CAV OP, I do not think those can be password protected as they will be used in more than one world and may not work in any world with the wrong PW on it.
I am only guessing on this at this time, so I may be wrong on this point.