Trouble installing Gallery on OS X Server 10.2

I am trying to install Gallery on our OS X server but I keep running into the same two problems: 1. After I run the configure.sh script and click on the Configuration Wizard link on the configuration page, I get the following error: Internal Server Error The server encountered an internal error or misconfiguration and was unable to complete your request. Please contact the server administrator, admin@domain.com and inform them of the time the error occurred, and anything you might have done that may have caused the error. I have found that if I remove the .htaccess file from the /gallery/setup directory, the error goes away and I can get the "Step 1" page of the Gallery setup. 2. I have tried to adding: <Directory /Library/WebServer/Documents/gallery> AllowOverride Options FileInfo </Directory> as suggested by Gallery to my httpd.conf file but each time I rerun the setup wizard, it says that Apache is not obeying the .htaccess files. I have also tried adding the same line to my httpd_macosxserver.conf file, but still not luck. I have added the lines in various place throughout the http.conf & macosxserver.conf files, but still nothing - I am checking the configs with configtest - no errors. I have installed Gallery on my home machine without a glitch, but server seems to be a different beast. How do I get apache to obey my .htaccess files? Does anyone have any suggestions that may solve the issue? any help is appreciated. vfranklin