Hi,
I have this exact issue (WebDAV not allowing access when directory password authentication enabled on /dav folder).
My blog is in the base directory, and WebDAV is in the /dav folder. If I comment out the section like Deviant did, I can login and authenticate fine. If left as standard I can’t connect.
Problem is – with the changes above (adding the extra line), I still can’t get access.
Do I need to make any other changes (ie to my index.php) or anything else?
Thanks,
Shane.