I have an images folder that html page runs off of that would be located on the computer of the person running the program. I want to make the images as tough to steal as i possibly can.

All my current problem is is how do i keep them from being able to access the folder? Can i lock the folder and hide it to whoever installs the application? Anyone have any ideas or previous experience with this?

Look you can't do that... unless you may run a service to open all files so user can't open\copy or do any operations on those files (I don't recommend it)
You may save images as binary so user can't access it, but still any operations applicable on them.