Yes really! If your htaccess file was deleted it would show a 404 Error but instead it's showing a Forbidden Error which it should for an htaccess file.
EDIT:
I take that back, your htaccess file may be deleted but since your directory permissions are wrong than it might not show a 404 Error. And Wizard was right, it's your directory permissions that's causing you the problems.
Directories should be 755 and html files should be 644. Your file manager will set them correctly by default.
You also need to go to your home directory and set the permissions for 'public_html' and 'www' to 750.
I did what you say and still the problem persist.
EDIT:
Also this problem still exist. It shows up in the error log:
[sat Oct 10 13:32:10 2009] [crit] [client 69.123.32.192] (13)Permission denied: /home/nworld/.htaccess pcfg_openfile: unable to check htaccess file, ensure it is readable
[sat Oct 10 13:32:10 2009] [crit] [client 69.123.32.192] (13)Permission denied: /home/nworld/.htaccess pcfg_openfile: unable to check htaccess file, ensure it is readable
[sat Oct 10 13:32:10 2009] [crit] [client 69.123.32.192] (13)Permission denied: /home/nworld/.htaccess pcfg_openfile: unable to check htaccess file, ensure it is readable
[sat Oct 10 13:32:10 2009] [crit] [client 69.123.32.192] (13)Permission denied: /home/nworld/.htaccess pcfg_openfile: unable to check htaccess file, ensure it is readable
[sat Oct 10 13:32:10 2009] [crit] [client 69.123.32.192] (13)Permission denied: /home/nworld/.htaccess pcfg_openfile: unable to check htaccess file, ensure it is readable
[sat Oct 10 13:32:10 2009] [crit] [client 69.123.32.192] (13)Permission denied: /home/nworld/.htaccess pcfg_openfile: unable to check htaccess file, ensure it is readable
[sat Oct 10 13:32:09 2009] [crit] [client 69.123.32.192] (13)Permission denied: /home/nworld/.htaccess pcfg_openfile: unable to check htaccess file, ensure it is readable
[sat Oct 10 13:32:09 2009] [crit] [client 69.123.32.192] (13)Permission denied: /home/nworld/.htaccess pcfg_openfile: unable to check htaccess file, ensure it is readable
I don't know what its talking about. I don't have a .htaccess in my /home/nworld/ directory.