I have created a document library in SPS 2003 and
trying to setup security settings for it.

1) I went to "Modify columns and Settings" but couldnt
find an option to restrict user access from anywhere.
There is an option that lets me "Specify Area for this
doc lib" and inside it there is an option to specify
"Audience" for this. Now no matter what I change
there, whenever i come there again, the audience is
setup to "All portal users" and the area never
changes.

2) I tried to setup security restrictions for an area,
then put this document library in that area but even
that doesnt work.