The problem is not in your httpd.conf., but rather in SELinux. It is run in targeted mode by default in FC4. There is an article on how to get your Apache web server to work under FC4 in the FC4 documentation.
I had the same problem as I had setup Virtual servers pointing to /home/vs1, etc... This did not work in FC4, nor would a soft-link work since SELinux said there were no permissions. I now have it working!
The important thing here is not that SELinux is complicated but rather Apache is very complicated and SELinux enforces the rules.
I followed the FC3 documentation "Understanding and Customizing the Apache HTTP SELinux Policy" which helped me get Apache working under FC4.
The link is
http://fedora.redhat.com/docs/selinux-apache-fc3/