Can I build a site inwhich, when people go to the site they will need the password to view the contents and how is this possible?

Yes it is possible, on cPanel, click Password Protected Directories, and Add the Username and Password, then just go back and add the files to the directory with the password on it.

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I have created a password protected folder and added the file I wanted to protect. However, the link works and it asks for username and password but when it takes me to the protected page a box pops up and asks for username adn password again! this is the message the box has:

* Please enter name adn password for this content
Server: www.ka-clan.com/

, I can see the page and everything written on it BUT not the pictures or buttons that I added from my own files! although anything I added from outside (game links with pics, shoutbox etc.) do work!

What am I doing wrong? all I see is a white box with the small "x" on the top left side corner. All my other pages' pictures work.

Can someone pls help? Many thanks in advance!
Axioma

You have multiple password protected files. This means:
1. You probably blocked images to use password.
2. The web page also is protected.

To solve this, try to change permissions on your images.

All the best.