The bigger question is "Should you password protect a RSLogix 500 program?"
Here is my take on it:
1) If you are an OEM and this machine will be sold to someone else where the code might become available to your competitors or you have warranty or liability concerns then you may want to consider password protecting it. You better be prepared to support the program for the life of the system.
2) If you are writing a program for a customer who paid you develop the program then no way, unless he asks you to and the password is disclosed to him. Its his program. Not yours.
3) If you are writing a program for an employer to be used at one of your employers facilities then no way, unless the password is disclosed to others as well. We see time and again where the programmer leaves the company and then everyone gets screwed over by a password protected program - its not just the employer, it affects his other employees and customers.
Don't get me wrong. There are good legitimate reasons to put a password on. But doing so just because you can is not one of them.