Password protection on webpages

I have a Windows 2000 system where I want to password protect web documents. I have research the htaccess process and after trying that found that sometimes Windows 2000 does not recognize the . documents, so I followed the ht.acl process using a txt file to store the username and encrypted password.
--------------------------------------------------
ht.acl consists of and stored in the folder I wish to protect

AuthUserFile c:/FoxServ/Apache/bin/pass.txt
AuthName "title"
AuthType Basic

<Limit GET POST>
require valid-user
</Limit>
----------------------------------------------------------
pass.txt consists of and stored in the c:/FoxServ/Apache/bin/ folder

username:encryptedpassword
----------------------------------------------------------------------------------

On the local server if I open a browser it works. If I go to any other computer it does not.
Any suggestions???

Note: The encryption file was created using a Linux box and then ftp'd over to the appropriate folder, since the local computer htpasswd.exe didn't seem to recognize the commands (-c, -b, etc...) to create the file.

Note:  The httpd.conf was modified:

AllowOverride All

AccessFileName ht.acl .htaccess

This was added to the bottom of the httpd.conf file
#--------------------------------------------------
<Directory "/Apache/www/securedfolder">
     AllowOverride All
     Options None
     ORder deny, allow
</Directory>
#-------------------------------------------------


The directory paths throughout the httpd.conf file seem to be accurate.  And yes I have rebooted for every change. Still nothing??  Possibly another modification to another variable in the conf file???