Directory Browsing for Apache 2.2.14 not working.

I have several sites hosted and need to enable directory browsing on one of them.  I have edited the .htaccess file in the site directory as attached.  The 2nd snippet is the apache2.conf file.  There is nothing in the httpd.conf file.  After adding the +Indexes we have restart the server and still can't get any listing on our /newsletter directory, just says that we don't have permission.
DocumentRoot "/home/os01/www"
<Directory "/home/os01/www">
allow from all
Options +Indexes
IndexOptions FancyIndexing HTMLTable

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ServerRoot "/etc/apache2"

LockFile /var/lock/apache2/accept.lock

PidFile /var/run/

Timeout 300

KeepAlive On
MaxKeepAliveRequests 100
KeepAliveTimeout 15
<IfModule mpm_prefork_module>
    StartServers          5
    MinSpareServers       5
    MaxSpareServers      10
    MaxClients          150
    MaxRequestsPerChild   0

<IfModule mpm_worker_module>
    StartServers          2
    MaxClients          150
    MinSpareThreads      25
    MaxSpareThreads      75 
    ThreadsPerChild      25
    MaxRequestsPerChild   0

AccessFileName .htaccess

<Files ~ "^\.ht">
    Order allow,deny
    Deny from all
DefaultType text/plain

HostnameLookups Off

ErrorLog /var/log/apache2/error.log

LogLevel warn

Include /etc/apache2/mods-enabled/*.load
Include /etc/apache2/mods-enabled/*.conf

Include /etc/apache2/httpd.conf

Include /etc/apache2/ports.conf
LogFormat "%h %l %u %t \"%r\" %>s %b \"%{Referer}i\" \"%{User-Agent}i\"" combined
LogFormat "%h %l %u %t \"%r\" %>s %b" common
LogFormat "%{Referer}i -> %U" referer
LogFormat "%{User-agent}i" agent
ServerTokens ProductOnly

ServerSignature On
Include /etc/apache2/conf.d/

# Include the virtual host configurations:
Include /etc/apache2/sites-enabled/

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pilson66Connect With a Mentor Commented:
remove .htaccess file and try again
Does a index.htm or index.html exist at the document root?  If so, rename it.
Sorry didn't read the permission part, have you checked to make sure the directory has Apache permissions?
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andygee1Author Commented:
At the document root meaning the root of the site, or the root of the folder that we want to be able to browse.  The site root does have a index, but the /newsletter folder does not have any index file, just pdf's and folders.
Check the permissions in /newsletter directory
it must be an equal as apache user, and owner`s permissions are rwx in directory

drwxr-xr-x 11 apache apache  504 Aug 7  2010 roundcube
andygee1Author Commented:
Newsletter directory permissions:

drwxrwxr-x 16 root    root    4096 2011-03-24 08:41 newsletters

Content within the newsletters directory has same:
drwxrwxr-x 3 root root 4096 2009-10-28 12:05 Det News 1997

andygee1Author Commented:
ok that worked for me.  Is there anything else I should do to it or is it ok to leave without the .htaccess file?
. htaccess needs to add the settings without changing the global server configuration.
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