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chmod your .htaccess and .htpasswd file
chmod your .htpasswd files 640, .htaccess files 644 chmod php files 600,
chmod files that you really dont want people to see as 400 (wp-config.php)
and NEVER chmod 777, if something requires write access use 766 or 775
I'd say take any further technical questions about the Apache server to our Apache Forum [webmasterworld.com]. jdMorgan moderates that forum and knows more about Apache than anyone else I know. Since this is th Google SEO forum, we have people on all kinds of servers and going too deep into Apache is kind of off-topic.