unable to password protect directory

To remove the protection you don't need to remove the user, just untick the box in the same area you password protected the directory. If you'd like to remove the user, you'll find him in the .htpasswds directory in the root of your account, outside the public_html.

You'll note the . on the front end of that directory name. This means its hidden. Assuming you're looking around via the cPanel File Manager to find this, you'll need to expose hidden dot files and folders. On the main page of your cPanel, at bottom, click the "Reset all interface settings" link you see there. This will refresh the page. Now click File Manager to reopen it, and you'll see some options on a popup, one of them is for "Show Hidden Files (dot files)" be sure to tick that.

You should now be able to see the .htpasswds directory I believe. Give it as go.