Those of you who know the language very well, could you set a password on a container, lets say a chest that has the players name on it, so only the player that knows the correct password can open the chest?

What you could do is make different cards that when you look at them each display a different password. The player finds the different cards and tries them in turn with the container (in Quest terminology, uses the object with another object).
Did that make sense?

Thats an interesting idea as well, but what I was considering is keeping inventory for ongoing players in a chest (rather then a room) and to access their things, they can just open their chest and put them items in their inventory. This is because you cannot place 'attributes' on the multiplayer player objects. This goes along with the idea of having a room for each regular player where they keep all their items, drop them off before they log.

I don't know what you mean by 'attributes' but you can put properties on multiplayer objects and players and they are persistent. Adding a password to interact with an object would be as simple as making the objects USE script prompt the player to enter the password, storing the next text entered into a string and trying it against the password property of the object.

There's a million ways to do persistent item storage with Quest.

The system I use is to have a special room containing objects with the same name as the user's log in, it stores all their data such as password and items as properties on that object. That way the data's not passed on to the next person who logs on after you've gone.