I like Dynamic Drive but these might be easier to use:
.htaccess authentication generator:
http://www.htaccesstools.com/htaccess-authentication/
.htaccess password generator:
http://www.htaccesstools.com/htpasswd-generator/
As for the path, in your admincp on the bottom left click Maintenance now click View PHP Info and your path will be shown there. Most prefer to upload the .htpasswd file (this file contains the password) into a directory just above public_html i.e.
/home/useraccount/htpasswds/.htpasswd
Instead of:
/home/useraccount/public_html/.htpasswd
This way the file is above the normal web folder level per say i.e. more secure

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