Deny from all
is an .htaccess command(the actual content of that file you are trying to view). Not a denial of being able to edit the file. Just reopen the .htaccess file in the text viewer of choice and make the alterations as you so desire, save it, then reupload it to your folder of choice.
Though I think inadvertently you are blocking even yourself from viewing said application once uploaded.
I would do something like:
order deny,allow
deny from all
allow from 127.0.0.1
which will deny everyone but the IP in the allow from
line, which you would change the IP to match your IP which you can obtain from http://www.whatismyip.com/ or similar site.
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