I have created a development group and set all visible templates to only allow the development group access to them, and enabled HTTP Auth. Those templates show the key icon next to them. However, the templates are still accessible without having to login. I’ve tested in both FF and Safari.
EE version 1.6.8 (it will be upgraded later this week).
HTTP auth is working on another site on the same server, so I assume it’s not a server issue. Any ideas?