is it possible to hide the members list from the public

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No. But there are two templates that I saw where the link to the memberlist is not on the menu on the index page. I don't remember which ones, so look at the template/style samples in our FAQ section. However, there still is a way a person could see the memberlist if they knew the correct URL to put in. The average guests don't know that, though. Someone determined to see your memberlist probably would figure it out.