Troubles with VirtualHost configuration: never asked for password

[Will Scheidegger]

Dear subversion users

I'm having a hard time configuring my virtual host to restrict access to my 
subversion repository. This is what my conf looks like:

#Virtual Host Configuration

<VirtualHost w.x.y.z:80>
        ServerName svn.domain.com

        <Location /svn/myproject>
                Order Allow,Deny
                Allow from all
        
                DAV svn
                SVNPath /usr/local/svn/myproject
                AuthType Basic
                AuthName "Subversion Repository"
                AuthUserFile /etc/subversion/passwd
                Require valid-user
        </Location>
</VirtualHost>


Without the "Order Allow,Deny" + "Allow from all" directive the default virtual 
host configuration takes over and access is denied ("Server sent unexpected 
return value (403 Forbidden) in response to OPTIONS request..."). But with the 
directives I'm never asked for a password. According to all the manuals I 
consulted on the web, this setup _should_ challenge the user for a password 
(stored in /etc/subversion/passwd). Do I need to configure something else, i.e. 
modify stuff in /usr/local/svn/myproject/conf?

Thanks!

-will