Our latest installation of Apache requires any files with server-side includes (statements of the form \<!--# . . . )have the executable bit set.
At present there are two ways to get your server-side-include (SSI) lines to work again. One is by making an entry in a .htaccess file in your public_html directory. Another is by chaning file permissions on each file containing an SSI.
To use the .htaccess approach just add the following line to your .htaccess file.
AddOutputFilter INCLUDES .html
As there is a drawback to just setting the executable bit on all web page files (Apache would need to log each) only those files with server-side includes should have the executable bit set.
Joel suggests using the following code snippet to change the permissions on the appropriate files.
cd /u/<acctname>/public_html for file in `grep -rl "<\!\-\-\#" .` do chmod +x $file done
For more on SSI and other HTML features see Web features: the major parts of HTML.