I don't see the rest of your conf file, but that section looks all right. It took me a while to figure out how to do the same thing. I had to add a <Directory ...> statement in to the file as well. It goes something like this:
<Directory /home/*/public_html>
AllowOverride FileInfo AuthConfig Limit
Options MultiViews Indexes SymLinksIfOwnerMatch
<Limit GET POST OPTIONS PROPFIND>
Order allow,deny
Allow from all
</Limit>
<LimitExcept GET POST OPTIONS PROPFIND>
Order deny,allow
Deny from all
</LimitExcept>
</Directory>
Plus, if you want to add some CGI scripts to your files as well, add these line as well:
<Directory /home/*/public_html/cgi-bin>
Options ExecCGI
SetHandler cgi-script
</Directory>
Good luck!
PS I recommend looking up more info on those options, those MAY be really insecure.