Webhost...if you go to Options/Permalinks in the WP admin it tells you what to do. There are some options on how to generate different link structures. I love that it gives you this option. Once you choose how you want it setup it generates the mod-rewrite code which you then copy into a .htaccess file. All the instructions are there and fairly easy to understand.
Exactly right. Fantastico is great. My "other" host doesn't give me a cpanel at all so to create an sql database I have to call or email them and wait a week for them to do it. With fantastico, it installes the db and wordpress and it is ready to go!