in reply to .htaccess file

As AM stated, find the httpd.conf section that controls the htdocs section:
<Directory "/usr/local/apache/htdocs"> . . AllowOverride None . . </Directory>
and change "None" to the combination you want. Minimally:
AllowOverride AuthConfig
Be sure you get the htdocs section, you probably don't want to mess with the section:
<Directory /> Options FollowSymLinks AllowOverride None </Directory>

--Jim