you can create passwords on windows, look into the bin folder for htpasswd.exe:
this is an extract from a french page on how to create passwords on windows. tried to find out when I started using apache a year ago, and it took me 2 hours to find the page, it's a shame there's so few explanation for apache for win on the net:
c:\apache\bin>htpasswd -c users BugsBunny
Automatically using MD5 format on Windows.
New password: ******* carotte
Re-type new password: ******* carotte
Updating password for user BugsBunny
.htaccess:
AuthName "Bienvenue sur mon serveur web"
AuthType Basic
AuthUserFile "c:/apache/bin/users"
require valid-user