I just submitted a question that has been nagging me for days about how to get .htaccess files working, and I just figured out the very simple answer.
I had been spending all my time messing with the setting in the main httpd.conf file, and then realized that in the private/etc/httpd/users directory is a small config file for each user.
This is the file where the following change needs to be made:
AllowOverride none changes to AllowOverride AuthConfig
Every other source I found on the web talked about altering httpd.conf, but changes to this will not effect the pages within any particular user folder. Hope this helps somebody else!
Nate

