What leads you to believe that the auxconfigdir's being ignored?
What happens when you hit port 8000 at the IP you've specified as page root? Can you get AOLserver to return a static page from the directory?
If so, what happens when you hit index.tcl in that directory? Does the login window come up? Are you getting errors in server.log?
There are a bunch of possible failure points when you're setting stuff up, thus all the questions. You may well have diagnosed the problem correctly, but it doesn't hurt to ask given that you're new with the whole suite of software.