I have lately installed Apache on my small FreeBSD machine. All was working fine telnet through the local machine and http through Opera on my small XP box (connected via my DSL router) were garnering the "It really works!Inch page. Then, I restarted my BSD machine and today neither telnet (through both su and my normal account) nor Opera are permitted connections--I keep get 403 errors for. I have checked permissions and went through httpd.conf many occasions however i can't figure this out. My httpd.conf file is the following:

ServerRoot "/usr/local"

Listen 80

LoadModule authn_file_module libexec/apache22/mod_authn_file.so
LoadModule authn_dbm_module libexec/apache22/mod_authn_dbm.so
LoadModule authn_anon_module libexec/apache22/mod_authn_anon.so
LoadModule authn_default_module libexec/apache22/mod_authn_default.so
LoadModule authn_alias_module libexec/apache22/mod_authn_alias.so
LoadModule authz_host_module libexec/apache22/mod_authz_host.so
LoadModule authz_groupfile_module libexec/apache22/mod_authz_groupfile.so
LoadModule authz_user_module libexec/apache22/mod_authz_user.so
LoadModule authz_dbm_module libexec/apache22/mod_authz_dbm.so
LoadModule authz_owner_module libexec/apache22/mod_authz_owner.so
LoadModule authz_default_module libexec/apache22/mod_authz_default.so
LoadModule auth_basic_module libexec/apache22/mod_auth_basic.so
LoadModule auth_digest_module libexec/apache22/mod_auth_digest.so
LoadModule file_cache_module libexec/apache22/mod_file_cache.so
LoadModule cache_module libexec/apache22/mod_cache.so
LoadModule disk_cache_module libexec/apache22/mod_disk_cache.so
LoadModule dumpio_module libexec/apache22/mod_dumpio.so
LoadModule include_module libexec/apache22/mod_include.so
LoadModule filter_module libexec/apache22/mod_filter.so
LoadModule charset_lite_module libexec/apache22/mod_charset_lite.so
LoadModule deflate_module libexec/apache22/mod_deflate.so
LoadModule log_config_module libexec/apache22/mod_log_config.so
LoadModule logio_module libexec/apache22/mod_logio.so
LoadModule env_module libexec/apache22/mod_env.so
LoadModule mime_magic_module libexec/apache22/mod_mime_magic.so
LoadModule cern_meta_module libexec/apache22/mod_cern_meta.so
LoadModule expires_module libexec/apache22/mod_expires.so
LoadModule headers_module libexec/apache22/mod_headers.so
LoadModule usertrack_module libexec/apache22/mod_usertrack.so
LoadModule unique_id_module libexec/apache22/mod_unique_id.so
LoadModule setenvif_module libexec/apache22/mod_setenvif.so
LoadModule version_module libexec/apache22/mod_version.so
LoadModule ssl_module libexec/apache22/mod_ssl.so
LoadModule mime_module libexec/apache22/mod_mime.so
LoadModule dav_module libexec/apache22/mod_dav.so
LoadModule status_module libexec/apache22/mod_status.so
LoadModule autoindex_module libexec/apache22/mod_autoindex.so
LoadModule asis_module libexec/apache22/mod_asis.so
LoadModule info_module libexec/apache22/mod_info.so
LoadModule cgi_module libexec/apache22/mod_cgi.so
LoadModule dav_fs_module libexec/apache22/mod_dav_fs.so
LoadModule vhost_alias_module libexec/apache22/mod_vhost_alias.so
LoadModule negotiation_module libexec/apache22/mod_negotiation.so
LoadModule dir_module libexec/apache22/mod_dir.so
LoadModule imagemap_module libexec/apache22/mod_imagemap.so
LoadModule actions_module libexec/apache22/mod_actions.so
LoadModule speling_module libexec/apache22/mod_speling.so
LoadModule userdir_module libexec/apache22/mod_userdir.so
LoadModule alias_module libexec/apache22/mod_alias.so
LoadModule rewrite_module libexec/apache22/mod_rewrite.so

<IfModule !mpm_netware_module>
<IfModule !mpm_winnt_module>

User www
Group www

</IfModule>
</IfModule>

ServerAdmin gvkv@gvCorp.com

ServerName 192.168.2.12:80

DocumentRoot /home/prosperity/html

<Directory />
    AllowOverride None
    Order deny,allow
    Deny from all
</Directory>

<Directory /home/prosperity/html>

    Options Indexes FollowSymLinks

    AllowOverride None

    Order allow,deny
    Allow from all

</Directory>

<IfModule dir_module>
    DirectoryIndex index.html
</IfModule>

<FilesMatch "^\.ht">
    Order allow,deny
    Deny from all
    Satisfy All
</FilesMatch>

ErrorLog "/var/log/httpd-error.log"

LogLevel warn

<IfModule log_config_module>

    LogFormat "%h %l %u %t \"%r\" %>s %b \"%{Referer}i\" \"%{User-Agent}i\"" combined
    LogFormat "%h %l %u %t \"%r\" %>s %b" common

    <IfModule logio_module>
      # You need to enable mod_logio.c to use %I and %O
      LogFormat "%h %l %u %t \"%r\" %>s %b \"%{Referer}i\" \"%{User-Agent}i\" %I %O" combinedio
    </IfModule>

    CustomLog "/var/log/httpd-access.log" combined
</IfModule>

<IfModule alias_module>

    ScriptAlias /cgi-bin/ "/usr/local/www/apache22/cgi-bin/"

</IfModule>

<IfModule cgid_module>

</IfModule>

<Directory "/usr/local/www/apache22/cgi-bin">
    AllowOverride None
    Options None
    Order allow,deny
    Allow from all
</Directory>

DefaultType text/plain

<IfModule mime_module>

    TypesConfig etc/apache22/mime.types

    AddType application/x-compress .Z
    AddType application/x-gzip .gz .tgz

</IfModule>

<IfModule ssl_module>
SSLRandomSeed startup builtin
SSLRandomSeed connect builtin
</IfModule>

Include etc/apache22/Includes/*.conf

EDIT: Chris requested some log file data so here you go.

First, httpd-error.log

[Sun Apr 19 22:37:35 2009] [notice] Digest: done
[Sun Apr 19 22:37:36 2009] [notice] Apache/2.2.9 (FreeBSD) mod_ssl/2.2.9 OpenSSL/0.9.8e DAV/2 configured -- resuming normal operations
[Mon Apr 20 00:00:28 2009] [notice] caught SIGTERM, shutting down
[Mon Apr 20 00:01:18 2009] [warn] Init: Session Cache is not configured [hint: SSLSessionCache]
[Mon Apr 20 00:01:19 2009] [notice] Digest: generating secret for digest authentication ...
[Mon Apr 20 00:01:19 2009] [notice] Digest: done
[Mon Apr 20 00:01:20 2009] [notice] Apache/2.2.9 (FreeBSD) mod_ssl/2.2.9 OpenSSL/0.9.8e DAV/2 configured -- resuming normal operations
[Mon Apr 20 00:01:26 2009] [error] [client 192.168.2.10] (13)Permission denied: access to / denied
[Mon Apr 20 00:01:54 2009] [error] [client 192.168.2.12] (13)Permission denied: access to / denied
[Mon Apr 20 00:02:12 2009] [error] [client 192.168.2.12] (13)Permission denied: access to /home/prosperity/html/index.html denied

Second, httpd-access.log:

192.168.2.12 - - [19/Apr/2009:21:31:40 -0400] "GET / " 403 202 "-" "-"
192.168.2.10 - - [19/Apr/2009:21:51:07 -0400] "GET / HTTP/1.1" 403 202 "-" "Mozilla/5.0 (Windows; U; Windows NT 5.1; en-US; rv:1.9.0.8) Gecko/2009032609 Firefox/3.0.8 (.NET CLR 3.5.30729)"
192.168.2.12 - - [19/Apr/2009:22:00:29 -0400] "GET / " 403 202 "-" "-"
192.168.2.12 - - [19/Apr/2009:22:00:54 -0400] "GET /home/prosperity/test.html" 403 227 "-" "-"
192.168.2.12 - - [19/Apr/2009:22:01:13 -0400] "GET /home/prosperity/index.html" 403 228 "-" "-"
127.0.0.1 - - [19/Apr/2009:22:07:00 -0400] "GET / HTTP/1.0" 403 202 "-" "-"
192.168.2.12 - - [19/Apr/2009:22:13:12 -0400] "GET /home/prosperity/html/test.html" 403 232 "-" "-"
192.168.2.10 - - [20/Apr/2009:00:01:26 -0400] "GET / HTTP/1.1" 403 202 "-" "Mozilla/5.0 (Windows; U; Windows NT 5.1; en-US; rv:1.9.0.8) Gecko/2009032609 Firefox/3.0.8 (.NET CLR 3.5.30729)"
192.168.2.12 - - [20/Apr/2009:00:01:54 -0400] "GET /" 403 202 "-" "-"
192.168.2.12 - - [20/Apr/2009:00:02:12 -0400] "GET /home/prosperity/html/index.html" 403 233 "-" "-"