IF this is not possible,
Is it possible to ask the user every time they create a new folder or file if they would like the information in the folder or file to be encrypted?
1) No - that's what EEPC is for.
2) No - EEFF is policy controlled - administrators decide beforehand what to protect, as users invariably don't make good security decisions. Also it does not matter WHERE files are stored, it matters what's in them - EEFF decides to protect a file based on location, originating application, file type, or with DLP, based on content and key words.