Problem with apache and mod_include

[Avery Fay <avery@ravencode.com>]

I recently installed debian and I'm trying to move a website I'm
developing over to this installation. The problem is that I can't seem
to get mod_include to work. The directory has includes enabled:

<Directory /var/www/>
    Options Indexes Includes FollowSymLinks MultiViews

And it looks like it should parse my index.shtml file:

    <IfModule mod_include.c>
     AddType text/html .shtml
     AddHandler server-parsed .shtml
    </IfModule>

But when I browse to localhost using mozilla it sends it back the
unmodified index.shtml with mime text/x-server-parse-html.

I also have enabled mod_include with the following command:

# modules-config apache enable mod_include

and it appears in /etc/apache/modules.conf:

LoadModule includes_module /usr/lib/apache/1.3/mod_include.so

I really have no idea what's going wrong. There doesn't appear to be any
errors or warnings in the apache logs. Does anyone have any suggestions?

Thanks,
Avery Fay