I have 2 RAQ2's and a RAQ3. The info I got from Cobalt from their knowledgebase and has worked for me is:
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# Access file
order allow,deny
allow from all
require valid-user
Authname DirectoryName
AuthPAM_Enabled off
Authtype Basic
AuthUserFile /home/sites/site9/web/.htpasswd
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I think if you insert some of the above code, especially the " AuthPAM_Enabled off ", that it will work. Cobalt uses CGI-Wrap so for extra security. Of course, you need to reconfigure the line pointing to the password file because that is different on every machine. Also, if you are brave enough, you can probably dig in the fileman.cgi and modify the code there.
Good Luck!!
<b>internetLarry</b>