when you made the htpasswd file with the htpasswd command, you made it htpasswd not .htpasswd right? So I think this will work for you .htaccess file

Code:
AuthType Basic
AuthName "Restricted Files"
AuthUserFile c:/Program Files/Apache Group/Apache2/auth/htpasswd
Require user philman213
and if you made the file .htpasswd you would simply use
Code:
AuthType Basic
AuthName "Restricted Files"
AuthUserFile c:/Program Files/Apache Group/Apache2/auth/.htpasswd
Require user philman213
to see which one you used just open up my computer and navigate to that directory and it will either have a . or not. Hope this finally gets it working.