Apache SSI prolems

I'm having problems getting Apache to parse server side includes correctly.
It doesn't even attempt to execute the include code (the tags show up int
the source of the browser). I think I have everything setup correctly
according to all the doc's I've read but I must be missing something. Here's
some info:

====================================
Apache/1.3.12
mod_include.c is compiled in (shows in httpd -l)

httpd.conf options:

    AddType text/html .shtml
    AddHandler server-parsed .shtml

  <Directory />
      Options FollowSymLinks Includes
      AllowOverride None
  </Directory>

code from .shtml file:

<!--#include file="header.html" -->


nothing in the err_log and the server has been restarted (several times :)
===================================


Anyone have any ideas?

Regards,
Mike Cantrell