I am sure that this problem has already been addressed or solved, but I thought I would provide some helpful instructions for people trying to configure the Apache password protection system (.htaccess/.htpasswd) in their Windows workstations or servers....
Here it goes:
1) Create your .htaccess file in the directory that you want to password protect:
Example:
AuthUserFile "C:/Apache/htdocs/DIRECTORY/.htpasswd"
AuthName "Your Admin Area"
AuthType Basic
<Limit GET POST>
require valid-user
</Limit>
2) Then go into your command prompt and connect to the "bin" sub-folder in your Apache folder....
Example:
cd ../../Apache/bin
This should take you to C:/Apache/bin
Basically when you open your Command Prompt, you will be taken to the C:/Documents and Settings/Your Username folder.
Note: Remember to connect to the drive where your Apache server is running.
3) Now, to create the .htpasswd file or whatever you want to name it, you'll need to run the HTPASSWD.exe application:
Example:
htpasswd.exe -c C:/Apache/htdocs/DIRECTORY/.htpasswd yourusername
Then you will be prompted for a password, type it in twice.
Voila! Basically it's the same process as creating a .htpasswd file in UNIX servers, however, you have to run the htpasswd.exe application in the C:/Apache/bin folder.
Then go to the directory:
http://localhost/directory/
and you should be prompted to login.
If you want to create another username/password in the .htpasswd file, then run through steps 2 and 3 again.
Hope this helps.