To use the 'password protected screensaver' system-wide, you will need to have Active Directory up and running. You will also need to decide if system-wide includes all employees, or just a few. After you make these decisions, you will create a GPO in Active Directory (typically using Group Policy Management Console) and link it to an Active Directory node. You will link to the domain if you want all employees to receive the policy. This will include executives, IT admins, power users, developers, etc. If you want to narrow the scope, you will link the GPO to an organizational unit containing only the user accounts that you want to affect.
After you have the GPO linked and configured, you will configure the "User Configuration|Administrative Templates|Control Panel|Display" node to configure the following two policies:
1) Screen Saver Executable Name
2) Password Protect the Screen Saver
This was first published in August 2005