Mod_auth_mysql And Htaccess Combination Related

I'm using .htaccess file and mod_auth_mysql for protection of a site, where the old users are in flat passwd file and the new ones are in DB, so i need both the standart .htpasswd check and if the user is not there check in the mysql DB

well here is how currently my htaccess file looks:
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AuthName "Password Protected Pages"
AuthType Basic
AuthUserFile /home/edited/.htpasswd

<limit GET POST PUT>
require valid-user
</limit>

AuthMySQLAuthoritative Off
AuthName "Members Only"
AuthType Basic
AuthGroupFile /dev/null
AuthMySQLHost domain-removed.com
AuthMySQLDB username-removed
AuthMySQLUser user-removed
AuthMySQLPassword edited
AuthMySQLUserTable members
AuthMySQLNameField username
AuthMySQLPasswordField password
AuthMySQLPwEncryption none
AuthMySQLUserCondition "status=1 AND siteid=2"
require valid-user

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but the site doesn't accept neither the flat passwd file users, neither the ones from the nats DB, it just pop-ups the password dialog box again, whicih means that the password is not accepted

For the users i tested with i double checked that they DO exist in the htpasswd file or in the DB, so its not that

also, cause the site and the DB are on different servers, i have authorised the first one to query the mysql db at the second, so its not from that as well

i have removed the sensitive information (domains, users and passwords from the sample code i pasted here)

so...i'm totally lost here and any directions or ideas will be highly apprecicated