I had a problem lately with password protected directory using Apache2 mod_auth. I had to serve one directory inside of password protected directory without any restrictions.
This is how to set it up in Apache2:
<Directory /> Options Indexes FollowSymLinks Includes AuthType Basic AuthName "Restricted area" AuthUserFile /home/artur/.apache_users require valid-user AllowOverride AuthConfig </Directory>
So now if you want to allow unrestricted access to passfree in root dir of web server just add this:
<Location "/passfree"> Satisfy Any </Location>
Simple eh?!