Password protected directory help

[jediofthefeet]

I've read a few tutorials on creating password protected directories for a web site. The ones I saw allowed me to add my access information to the directory. Also, it allowed me to allow users access, but only if they know the password I set for them.

I have Paymonde and CCBill for subscriptions-billing. They will let me install a script to handle subscriptions-billing, or they will can do it for me. I would need to provide Paymonde with a nonexpiring pass to my site so it can make sure my site is compliant with its rules.

This means I will need to create the directory first, and do all that .htpasswd and .htaccess and .auth stuff first, right?

[jediofthefeet]

In addition to that, after killing myself for hours on end trying to protect a directory [just for the companies], I need help on where to place the files, and what is my path.

Where exactly does .htaccess and .htpasswd go???

I get the login page, but when I type my info, I get declined.

Here is an example of my outer view.

banners folder
images folder
galleries folder
members folder leads to protected content
index.html

Also, I have no idea what the heck my full path is.

Nearly all the sites I see start off /home/public_html/protecteddirectory/.htpasswd

I right click and the most I get is /members/

This jazz is frustrating, but I must learn this stuff. The more I learn, the better off I will be now and later down the road.