.htaccess and .htpasswd Problems

Maybe it's because I'm an idiot, I don't know; regardless, I just can NOT seem to get this stuff to work right.
As a litle background, I work for a company that creates software for nonprofit organizations... payroll and database software, to be specific. To download updates, they use their website. However, it was poorly designed so they had me redo it. The one thing I can't figure out how to utilize properly, however, is the Enter Password function to enter the downloads page, which used to work like a charm.
Originally, I had created a back-up of the original site on my computer prior to uploading the new site I'd built, and this offline model featured a .htaccess file in the Downloads folder. Assuming this to be what caused it, I tried re-uploading this file... and the password function no longer worked.
So, I Googled .htaccess, used Javakit's tutorial, and built my own .htaccess and .htpasswd, uploaded them in ASII into the Downloads folder for my site... and nothing. Same thing; password box pops up, you enter user name and password then click okay, and it loops back.
What am I doing wrong? I'm CONVINCED I'm writing the filepath wrong to where the .htpasswd is located... but if anyone can give me some insight into this, I'd be much obliged.