I think there is a typo in the general faq section at question number four.
The format of the passwordfile for Basic HTTP authentication should be
<username>:<plain-text password>[:user defined fields: ...]
and the format of the passwordfile for Digest HTTP authentication should be:
<username>:<password encrypted with the crypt(3) function>[:user defined fields: ...]
The same typo is also present in man page.
And so, in the httpd.conf the "basic" keyword should be replaced with the keyword "digest" and viceversa.
Cheers
Cristian