edit httpd.conf
comment out AllowOverride None in Directory / and /var/www
change .htaccess to this:
Options +FollowSymlinks
# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>
# END WordPress
set correct permission on .htaccess
restart apache
update permalink on corresponding blog(s)
log out and log back in
pour mountain dew.