Redmine

I have Mercurial 1.9.1 setup on Ubuntu 11.04 with Redmine 1.2.1. No matter what I seem to try, when I want to access the Mercurial repository directly, I am asked for a username / password, yet I receive in the apache error log:
access to /hg failed for ip.ip.ip.ip, reason: No authentication has been configured

I tried removing from the hg.config file in /etc/apache2/conf.d all authentication parameters, then I get a 403 forbidden without a prompt. Here is my hg.config file:

PerlLoadModule Apache::Redmine
ScriptAlias /hg "/var/hg/hgwebdir.cgi"
<Location /hg>
AuthType Basic
AuthName "Redmine Mercurial Repository"
AuthUserFile /path/to/my/password/file
Require valid-user
PerlAccessHandler Apache::Authn::Redmine::access_handler
PerlAccessHandler Apache::Authn::Redmine::authen_handler
RedmineDSN "DBI:mysql:database=redmine;host=localhost"
RedmineDbUser "redmine_db_user"
RedmineDbPass "redmine_db_pass"
</Location>

Right now, I have mercurial running for one project with a crontab shell script at startup:

#!/bin/bash
cd /var/hg/repos/myproject/
hg --config web.allow_push=* --config web.push_ssl=False serve

just so the developers can use redmine and mercurial for now...but of course it is only good for one project as it binds to port 8000.

Can someone please direct me for getting either subversion or mercurial up and running correctly? Both are installed, I am just leaning towards mercurial for redmine since I was able to view the repository, although empty, when using mercurial and the project scanning init crons.

Thanks in advance. I'll be happy to post any files related to my configuration.

I followed the instructions at:
http://www.redmine.org/projects/redmine/wiki/HowTo_Install_Redmine_12x_with_Mercurial_and_Subversion_on_Ubuntu_Server_1004