Strange httpd / cpanel problem!

I am trying to allow previews for my customer websites via the dns server domain name but they won't work! Strange httpd / cpanel problem!

My server provider told me that I need to deselect the "Prevent Users from reading other webroots" when I build apache via WHM.

I did this and the site preview still wouldn't work, and nor would my website! It kepted on causing a server 500 error!

I took a look in my httpd error logs and found:

Code:
/home/*/public_html/.htaccess: IndexIgnore not allowed here
I deleted the .htaccess file and all is good with my website but why should apache start playing up, just because I tweaked a setting? ( the server is back up now, but the site preview still isn't working ! )

Can you please point me in the right direction, and shed any light on to why .htaccess should start killing the httpd server?

 

 

 

 

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