Hi
I think the simplest way to see people (usernames) logging in when they use passwords from .htpasswds is to look at your raw log. example:
IPorHOSTNAME - USERNAME [DATE] etc...
Second thing - I think using email to sending passwords every time the protected directory is accesed isn't secure.
If the passwords are neccesesary - maybe better idea is to use PHP/JavaScript or so. And you can be able to see all combinations of username/password and other details online on your site (for example using small MySQL database).
I hope it helps.
GL
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Don't tell I am paranoid - I know I am.