by Sam Stevens.
You've got your AuthType as NTLM in the apache config but in the posted moodle settings you are choosing Authentication Type as NTLMKerberos
Change the Authentication Type to just NTLM.
Unless you are trying to user Kerberos. In which case your apache set up is all wrong.
Also if you have just cut and pasted the config text from the wiki check 2 things. Paths are correct and that they work (so which ntlm_auth and is moodle in var/www/moodle or maybe just var/www ?)
Second is quotation marks. Cutting and pasting from a browser can do odd things with them. Delete each one and retype a "