Apache virtualhost order deny, allow works only on localhost; ignores public IP for allow

[Kirk Woellert <kdwoell@xxxxxxxxx>]

First time posting to the mail list- 

Environment:

RHEL6 

Apache v2.2 

UserDir configured/works great

SuExec configured/works great

I have restricted access to user directories as follows:

<Directory /home/*/public_html>

    Options MultiViews +ExecCGI

    AddHandler cgi-script .cgi .pl

    Order Deny,Allow

    Deny from All

</Directory>

An existing vhost with a FQDN works great. The big picture:

vhost block1: default site (/var/www)

vhost block 2: site that works great

vhost block 3: site that does not seem to obey order, deny,allow directives...

Blocks 2 and 3 are identical, except for the access directives and the various paths,etc.

For vhost 3, I want to allow access on the localhost, and, one IP from the Internet (redacted). Apache serves the site locally but, I can't access the site from the public  "xxx...." IP.  I'm using a physical path to test from the public IP as follows: xxx.xxx.xxx.xxx/~user/test/index.html

Here is vhost block 2, works great:

<VirtualHost *:80>

    ServerName user2Site

    ServerAlias user2Site

    DocumentRoot /home/user2/public_html/user2Site

    <IfModule mod_fcgid.c>

        SuexecUserGroup test test

        <Directory /home/user2/public_html/user2Site>

            Order Allow,Deny

            Allow from all

            Options +ExecCGI

            DirectoryIndex index.php index.html

            AllowOverride All

            AddHandler fcgid-script .php

            FcgiWrapper /var/www/php-fcgi-scripts/user2/php-fcgi-starter .php

        </Directory>

    </IfModule>

</VirtualHost>

Here is vhost block 3 site giving me problems:

<VirtualHost *:80>

    ServerName test

    ServerAlias test

    DocumentRoot /home/user3/public_html/test

    <IfModule mod_fcgid.c>

        SuexecUserGroup test test

        <Directory /home/user3/public_html/test>

            Order Deny,Allow

            Deny from all

            Allow from xxx.xxx.xxx.xxx 127

            Options +ExecCGI

            DirectoryIndex index.php index.html

            AllowOverride All

            AddHandler fcgid-script .php

            FcgiWrapper /var/www/php-fcgi-scripts/user3/php-fcgi-starter .php

        </Directory>

    </IfModule>

</VirtualHost>

I don't have a FQDN as yet, so I just made a entry in /etc/hosts as follows:

127.0.0.1 test

Here is an excerpt from the Apache error log: 
[Mon Jun 17 12:02:16 2013] [error] [client xxx.xxx.xxx.xxx] client denied by server configuration: /home/user3/public_html/test/index.html

I checked the suxec log and no errors are reported, the php starter script works as expected.

I've read the Apache docs and surfed the web a few days checking out other folks with similar problems. What am I missing?

-
Kirk Woellert