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
pass.txt consists of and stored in the c:/FoxServ/Apache/bin/ folder


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

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???
Who is Participating?
Is it running IIS it appears from the scripts to be apache, if IIS change the allow annonymous access on the site poof your done.  well you will deny all non authenticated
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