htaccess file help

I have an application running OK on apache 1.3, php and mysql. However, I notice I can list out a file's (func.inc) code within HTDOCS which I don't users to be able to do. Obviously, I don't want the application to stop running the PHP scripts. Things users cannot do is list the contents of htdocs, nor see the contents of the php scripts. I understand the HTACCESS file might be able to help, but it's a bit of a mystery to me. Mine says

<Files ~ "\.inc$">
Order allow,deny
Deny from all
</Files>

Any advice ?

 

Heres a bit of a tutorial on it