Htaccess. Changing permalinks doesn't make the urls work [WORDPRESS]

Ok so i just et up a new install of WP. everything went fine through the install and now its time to setup the theme and the blog itself.

I edited the link structure as usual (Done the same on plenty of sites in the past.) But for some reason this one isn't working.

Everytime i click a link with the pretty permalinks set, it returns a 404.

Here's the access file contents:

<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>

Code (markup):

Any one any ideas why it isn't working? Anyone had this problem with a fresh install of WP before?

EDIT: Here's the error it throws out. It's as if it is looking for a physical directory thats simply not there.
Not Found

The requested URL /archives/1 was not found on this server.

 

Did you verify the file is not read only?

 

Hi mizaks,

Yeah i checked that and got WP to update the access file on its own. (I usually take the code,edit the file and then reupload the htaccess file to the root.) Neither ways work.

I have other WP installs on this server and never had this kind of problem before, the only thing that is different between this site and the other sites is, this was the first site on my vps. Not sure if that has anything to do with it, but it's the only difference.

 

Spoken to my host, it's an issue of the config files for some reason. As it was the first domain added, it needs changing slightly.

Thanks for taking a look Mizaks

Dan