Permalinks issue

Hi Everyone,

I have installed WordPress on an Ubuntu 14.01 server and have wordpress running file but when I go to change the permalinks away from the default I hit a wall of 404 Not found pages.

The .htaccess file in the /var/www/html directory is all os as when I change the permalinks in wordpress and press save changes I get the Permalink structure updated message.

Can anyone shed any light on the subject as to why it wont find the page unless I leave it as the default page id?

Any help would be greatly appreciated.

Thanks
ikhan42