Ok, so if anyone else out there has the same issue, I found my solution.
It had to do with custom permalink categories I made up.
Check out this page:
http://www.lancelhoff.com/how-to-make-wordpress-permalinks-work-in-xampp/
Worked like a charm!
esmi – YOU ROCK!!!
Thank you so much! – I deactivated the plugins using the phpmyadmin technique and it worked like a charm (THANK G-D it didn’t have anything to do with my theme… That wouldn’t have been good)
Thank you!