Just to be clear, there are a couple different protection schemes that PDFs can have.
1) Password protection.
2) Usage Restrictions (usually on things like printing, etc).
3) Adobe DRM (aka digitally signed/encrypted).
The iLiad does not support #3. If it is just password protected, then you need to get the password from your friend. If it's digitally signed/encrypted with Adobe's eBook DRM, then the iLiad is not going to be able to open it.
I would assume that they don't have #3, because you can open the files on your PC without any problem. However, I can't really say without knowing more about the files.
As ericshliao says, you can try saving/printing to another PDF file and see if that one will open. Otherwise, I think you're going to have to ask for the password (unless you want to look around on "hacker" sites for something to crack the password).
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