they have no problme in programming
Nope. No problme at all, I'm sure they'll see their typo.
Someone clarify for me - if a game doesn't have DRM, does that mean you can copy the folder to another HD, and the game will still work?
Yes, or at least the installer can be copied and used without restrictions.
Is password protection a weak form of DRM, or not DRM at all?
Passwords are not DRM.