The answer to how to password protect a forum is simple. You DON'T.
This means it is not built into the system and has never been advertised as a feature. You will have to hack this capability into your forums if you wish to use it.
I know this was a feature of UBB but that is a different product by a different company. Jelsoft had decided that this was not a feature they were going to provide. It may become a feature in the future but I don't know for sure.
However you want to password protect your forums you can add a field called "Password" to the forum table and check it along with Usergroup Access. I think it would take all of 30 minutes to put it in place properly using templates and vBulletin's security.
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