mod_perl Basic Authentication problem using PerlAuthenHandler

[Jason]

In httpd.conf i have
<Location /~jter>
        PerlAccessHandler ApacheAuthentication
        PerlSetVar Intranet "65.103.229.188 => joe, 10.10.10.2 => userB"
        PerlAuthenHandler ApacheAuthentication
        AuthName realm
        AuthType Basic
        Require valid-user
        Order deny,allow
        Deny from all
</Location>







And my module is
package ApacheAuthentication;
#use strict;
use Apache::Constants qw(:common);
use Apache::URI;
use Apache::File;

sub handler {
        my $r = shift;
        # get user's authentication credentials
        my ($res, $sent_pw) = $r->get_basic_auth_pw;
        return $res if $res != OK;
        my $user = $r->connection->user;
        # authenticate through DBI
        my $reason = authen_dbi($r, $user, $sent_pw);
        if ($reason) {
                $r->note_basic_auth_failure;
                $r->log_reason($reason, $r->uri);
                return AUTH_REQUIRED;
        }
warn "FINISHED $user $sent_pw";
        return OK;
}






It warns to the log file and returns.... But the problem is, why does my browser come 
up "forbidden"

Has anybody gotten this to sucessfully work?
Server Version: Apache/1.3.22 (Unix) PHP/4.0.6 mod_perl/1.26 mod_ssl/2.8.5 
OpenSSL/0.9.6b 

Thanks in advance