"Client denied by server configuration - modules/cacherouter/cacherouter.inc"

I have just installed this module. When I visit my site I get a blank page. When I visit the Apache logs it shows:

client denied by server configuration: /hsphere/local/home/mysite.com/modules/cacherouter/cacherouter.inc

I added AllowOverRide All in my .htaccess to solve this problem but the Apache logs indicate that it isn't 'allowed here'. I'm on shared hosting. I haven't applied the patch included in the download for this module yet because I'm hoping to isolate the problem.

Should I send my host a request to set 'AllowOverRide All' for my directory or does the problem lie elsewhere?