Can't say what you've done wrong, but this setup works for me:
Alias /dav/ "/home/httpd/dav/files/"
# time out user locks if not resolved within 0.5 hours
DAVMinTimeout 1800
DAV on
AllowOverride AuthConfig
AuthType Basic
AuthName "blah blah blah"
AuthUserFil
Title: Apache WebDav setup problem
I came up with the following setup for webdav access using apache 2 unix and tried to test it using WebFolder in Windows xp.
ServerName admin.mysite.com
DocumentRoot /var/apache2/htdocs/webdav/
DAVLockDB /app/webdavlock
DAV On
AuthT