mod_layout 4.0.2a, apache 2.0.40, php 4.2.2 doesn't work

I'm having trouble with mod_layout and apache 2. I used mod_layout for years
on 1.3 and everything worked just fine. With apache 2, html files work just
fine whether they are file.html or file.php. However output just *stops* if
the page reaches any actual php code. This makes php much less useful. 

I am using .htaccess files at the moment to put in my headers and footers
since I'm migrating from an old layout to the new. The .htaccess contains:

AddOutputFilter LAYOUT php
LayoutHeader /layout/header.php
LayoutFooter /layout/footer.php


As I said, all of the html up to the first <?php displays, and after that
goes the footer and there is nothing in between.

Any ideas?

Thanks,
Matt

-- 
Matt Hyclak
Department of Mathematics 
Department of Social Work
Ohio University
(740) 593-1263