[eluser]Chris Newton[/eluser]
Their HTACCESS/WebDAV utility only does 2 things.
1 Sets up a directory with password protection (which is what most people are familiar with needing an HTACCESS file for.
OR
2. Creates a webdav folder, which is not what you want.
It's not intended to do what you're trying to do. Follow the directions I've laid out... you should be fine. I do this all the time. I've used DH for almost 10 years... I can probably get you through it.