No, it wasn't in the wrong place. In fact, the .htaccess protection on the site until it goes live was actually to blame. I've disabled this and it all works fine now. Just one further question:
When i go to change language, say to German, it translates fine and displays under the new URL. However, when on this newly translated page it is not possible to translate to any other language. To go back to English I have to use the browser back button. Is this behaviour correct?