Add Permission did not work in "Allow User to Edit Ranges"

Hello,

I am trying out the feature of "Allow User to Edit Ranges" in Excel using
the following on-line help:
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In order to give specific users access to ranges, your computer must be
running Windows 2000 or later and it must be on a domain.

1. On the Tools menu, point to Protection, and then click Allow Users to
Edit Ranges. (This command is available only when the worksheet is not
protected.)

2. Click New.

3. In the Title box, type a title for the range you're granting access to.

4. In the Refers to cells box, type an equal sign (=), and then type a
reference or select the range.

5. In the Range password box, type a password to access the range.

The password is optional; if you don't supply a password, any user will be
able to edit the cells.

6. Click Permissions, and then click Add.

7. Locate and select the users to whom you want to grant access. If you want
to select multiple users, hold down CTRL while you click the names.

8. Click OK twice. If prompted, retype the password.

9. Repeat the previous steps for each range for which you're granting access.

10. To retain a separate record of the ranges and users, select the Paste
permissions information into a new workbook check box in the Allow Users to
Edit Ranges dialog box.

11. Protect the worksheet: Click Protect Sheet in the Allow Users to Edit
Ranges dialog box.

12. In the Protect Sheet dialog box, make sure the Protect worksheet and
contents of locked cells check box is selected, type a password for the
worksheet, click OK, and then retype the password to confirm.

Note A sheet password is required to prevent other users from being able to
edit your designated ranges. Make sure you choose a password you can
remember, because if you lose the password, you cannot gain access to the
protected elements on the worksheet.

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I had specified the users in step 7 and setup password but I am finding out
that anyone that knows the password can edit the range. Also when I tried to
modify the permission list, there's nothing to modify.

From the instruction above (step 1 - 12), it seemed to indicate we need to
specify user name to grant the editing right. But from the menu itself, it
seemed to indicate the user list is to grant editing right without the
password.
I am confused about which is the correct. Please help, thanks.

hsinlin58