Why doesn't .htaccess and .htpasswd work?

My .htaccess looks like this and is in /srv/www/htdocs/

AuthName Restricted Area
AuthType Basic
AuthUserFile /srv/www/htdocs/.htpasswd
AuthGroupFile /dev/null

require user username

.htpasswd is in the same directory and looks like this-> Username Here:Encrypted Password Here

I used an online encryption tool to encrypt the password.

the permissions are:
linux-rawq:/srv/www/htdocs # ls -li .htaccess
247968 -rw-r–r-- 1 root root .htaccess
linux-rawq:/srv/www/htdocs # ls -li .htpasswd
247504 -rw-r–r-- 1 root root .htpasswd

the httpd.conf file says:

<Directory />
Options None
AllowOverride All
Order deny,allow
Deny from all

The site is on localhost, Suse 11.2 running Apache 2.

I have restarted Apache

The site shows me nothing, no prompt or error signals or anything. What am I missing?

Why do you put .htaccess in htdocs? .htaccess is for ~/public_html rather…