Problems setting up local WebDAV server

A while ago I had the brilliant idea of using iCal to run some maintenance scripts across my home network. First problem, you needed a WebDAV server to publish iCal calendars to, so I found this link:

http://www.tnpi.biz/computing/mac/tips/idisk/idisk-v2.shtml
(from http://www.macosxhints.com/article.php?story=20070813090414538)

But I ran into into a problem once I needed to tried to login with the login/pass I entered with the command:

Code:

htdigest -c /home/idisk/WebDavUsers iTools <login>

(see attach #1) I entered it over and over again, making sure it was correct, I even ran the command again (and again) with different logins. It would always come up with the "incorrect login/pass. try again" dialog.

Am I doing anything wrong here? I followed all the instructions to a 'T', I doubled checked everything.

Thanks,
Sam