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I've followed the directions given by Jadey above, and restarted Apache, but when I view the directory I've protected, there's no request for a username/password. I noticed the following things (which may be quirks of my server installation or perhaps changes since OS X Server 10.1)...

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It seems like a little thing, but when you work with tons of files on a daily basis, it's helpful to know exactly how many files are involved. When I saw how good OS X was at updating the window contents, I expected to have an indication of how many total items were in a given folder, maybe...