Some questions and answers:
Q : I added some files to my File Picker but they aren't showing up on my website
A : Check the file permissions on your files. Adding them to the file picker will still hide them from users that do not have permission to view the files.
Q : Does the File Picker support alternative storage locations?
A : Not at this moment. It should work but I don't offer support at the moment untill I get a proper test environment working (I'm having some issues configuring Amazon S3 storage at the moment).
Q : How does the password prompt work?