I finally succeeded in configuring the Apache web server on Razorblade to serve content from the users' home directories. The problem pertaining to permissions that was dogging us till now was solved by this command:
# chcon -R -t httpd_user_content_t /home/*/public_html/

Thanks to Stanton Finley's Fedora Core 5 Linux Installation Notes at: http://stanton-finley.net/fedora_core_5_installation_notes.html

One amazing place to get a Fedora Core 5 system up and running from scratch. Includes information on setting up your media players to configuring the various services.