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C panel password protect doesn't work

Using the c panel doesn't work. I spent close to an hour on the GD chat and they could not help me at all. (Waste of my time). I don't want to have to mess with creating  my own .htaccess file. Does anyone have a solution?

1. Go to file manager

2. click on the folder or file you want to password protect.

3. Select what user and name you want to use to access that file. Or create a new user/pwd

4. make sure the user is selected (check mark) from the list

5. click OK.

6. Go to test the web page and I get

Internal Server Error

The server encountered an internal error or misconfiguration and was unable to complete your request.

Please contact the server administrator and inform them of the time the error occurred, and the actions you performed just before this error.

More information about this error may be available in the server error log