I set up WordPress to run on my local windows box using apache virtual host. Once done with the installation I started getting “You do not have permission to access this directory” error. To solve this, add the default page to be displayed when a directory access is made, to your virtual host config.

<VirtualHost *:80>
    DocumentRoot "D:/projects/personal/wordpress-3.0.1/wordpress"
    ServerName alpha.com
		<Directory "D:/projects/personal/wordpress-3.0.1/wordpress">
		  DirectoryIndex index.php
    ErrorLog "logs/alpha.com-error.log"
    CustomLog "logs/alpha.com-access.log" common

Main thing to notice is DirectoryIndex index.php.

Read more about DirectoryIndex here.