Well I use wordpress version 2.5 and in Permalinks I picked Custom Structure as %postname% so i can get search engine friendly urls. when i save the changes it ask me to update .htaccess file. why is that ? my .htaccess file was a black one and i paste the given code on it. My domain is addon domain so it should be put in root or inside addon domain name ? ( I did put it in addon domain and got a Internal Server Error msg , so its wrong i guess) Do I have to put it in root ?
It shows this because your blog directory is not writable. You can either make the directory writable and change the permalink structure or access your blog directory via FTP, create a .htaccess file there and update it with the rewrite code found in wordpress dashboard. Hope it works!