Randy,
You can use the tDAV module, which is part of oacs-dav and also usable without OpenACS to provide WebDAV access to filesystem directories. You will need to setup a share in the config.tcl for it. Right now you need to use ns_perm for filesystem authentication, which is not really the best solution. Bart Teeuwisse has done some testing with tDAV and Arch. You can download the standalone tDAV code from http://tdav.museatech.net/file-storage/view/tDAV/tDAV-1.0b3.tar.gz
On security, It uses the same access controls as OpenACS for file-storage, so the security is the same. As Jeff says, it uses HTTP basic authentication. This means for good security you should require HTTPS for WebDAV access. After a long discussion on the AOLserver list it was my impression that the best solution is to use WebDAV over HTTPS for security.
The oacs-dav package allows WebDAV access to any content repository folder. The only package that automatically enables WebDAV support on its folders is file-storage. The tcl procedure oacs_dav::register_folder will let you WebDAV enable any content repository folder.