I know I'm coming late to the party but I'm having the identical problem described previously. I've setup the .htpasswd file and it seems fine. I have setup a .htaccess file in the directory I want to protect.
Trying to access this directory gives me the 500 internal server error and then the 'AuthName takes one argument' warning in the error log.
I have created the file using sudo pico and then typing it straight in (so I assume the line endings are OK). Is this a correct assumption?
I definitely have quote around the Authname.
The full .htaccess file is:
require user david kim
Anything else I can try - this is killing me!
Oh, and one more thing - is it wise/unwise to use the httpd.conf file to change the name of the .ht files to something that can be more easily written to the system - like apple.htaccess or whatever?