Sorry to waste your time, it’s working perfectly!
Probably needed to empty my cache.
I have a similar problem: in my case the plugin can’t write to the .htaccess file either
The .htaccess file is in a cgi-bin folder, which is in the same directory as all my wordpress files.
Could this be the problem?
I’ve tried creating another .htacces file within the wordpress directory, but that doesn’t work (results in an internal server error).
Help?