Oh I restarted. I restarted the crap out of HFS. I even dumped and reloaded the saved file system and settings. I disabled all custom settings. I deleted and re-added virtual folders and all files. Nothing. The only way it would answer to requests was to allow 'anyone' to access. Even 'anonymous' would not work (how are those different anyway?). Of course, with permissions set to anyone, I could access the site. But when I would try to get to any files, it would say it was restricted (which I expected). The only way to actually use the site and get files was to make it all open to 'anyone'.
Another thing I noticed: whenever someone was connected (even if it was just a white screen), it would show them as such. All connections would be listed as 'thinking' in the status. None of them would ever be shown in the log as ever getting the GET event (which I think is the very first step).
The only unusual thing about my setup was it was running on Linux/WINE> So, as of now, I am building a VM with Windows installed. We will see if that does any better. I hope so, because HFS was amazing - right up until it mysteriously stopped working.