Magic Folders has very robust network support. Not only can it protect files on your local computer, it can also protect files on any shared network drives you have mapped to local drives (as long as Magic Folders is installed on the machine hosting the shared drive). In addition it can hide your files even if your computer is the host computer and/or your local drives are shared with the network.
Multiple users can share the same drive, at the same time, each with their own magic folders that are only visible to them. In other words, any user can make their magic folders visible for themselves while keeping them hidden from all other users .
This also works for multiple users in XP. If you fast switch from one account to another, Magic Folders will switch too, keeping the previous user's magic folders hidden from the current user , even if the previous user's magic folders were visible at the time of the switch.