Okay - I'm getting closer. Having forced the webdav RPM to install (it consists of just a single library) by ensuring no dependancies are checked and all scripts are turned off, it finally seems to work.
It has taken some fiddling of the apache scripts, and I'm just using the non-SSL side at the moment. The easiest way to set it up seems to be to configure an i-bay with the passwords etc that you want, then add the 'Dav On' directive to the i-bay settings in httpd.conf.
I just need to work out how to set this up through the templates now, so it doesn't get lost each time an admin change is made. Rather than an i-bay, I will probably copy the relevant settings to a new custom template, so a 'hidden' http share is created (i.e. hidden from the normal admin screens). I guess in the longer term, an option in each i-bay modify screen could allow webdav services to be switched on and off for that i-bay.
I have no idea how secure this is, but for a closed internal network, it is ideal. I don't know if I will get to create a full HOWTO, but contact me if you are interested in setting up webdav on your e-smith server, and given enough interest I will put together some better instructions.
-- Jason
(e-smith at acadweb.co.uk)