I spend a lot of time before i found out my web root location, to point my .htaccess to .htpasswd file.
I'm not a expert on php en server-side scripting (more a mewbie).
After many error screens, some google-ing helpt me.
Found this php script that help a lot:
Uploaded the fullpath.php to my wordpress 'wp-admin' folder and run it. Now the root location was displayed. Some copy/paste in to the .htaccess file. Upload the .htaccess and .htpasswd in to my wordpress 'wp-admin' folder. It works.
Easy name and password generator:
After this installation was a piece of cake.
Hope its use full for you.