First off i think the problem is inn your Options statement it should be Options +Includes (with the + sign in front of Includes, not Options Includes. Try that first and see if that works. If not check through the following:
Make sure mod_include installed:
look for the following lines and make sure they are uncommented or present. If they are not present then you may need to add mod_include to your apache server.
AddModule mod_include.c
and
LoadModule includes_module modules/mod_include.so
look also for the following lines and make sure they are uncommented also
AddType text/html .shtml
AddHandler server-parsed .shtml
next in the virtual host entry in the apache config add a entry like so.
AllowOverride none
Options +Includes
Order allow,deny
Allow from all
This will allow the use of ssi and .htaccess for that directory.
for further refferance on mod_include check out this page.
http://httpd.apache.org/docs/mod/mod_include.html