alext
You state you had a crash during an upgrade.
Just to make sure your system is clean (and functioning correctly), it would be wise to do
signal-event post-upgrade
signal-event reboot
before proceeding further.
As far as the ibay is concerned, in your case the ONLY option you should use for "Public access via web or anonymous ftp" is
Entire Internet (no password required)
On it's own, this should allow anyone to access the site.
Your .htaccess should then force the authentication.
I suggest you stop changing settings all over the place randomly, that's only confusing and misleading you. It seems you do not really understand what you are doing. As I said, disable the ibay authentication entirely.
Also there is a better and safer way to setup authentication with .htaccess on sme server, using a very easily implemented custom template.
It removes the security risks associated with the public exposure your .htaccess file has now.
Please read
http://wiki.contribs.org/Htaccess