Permalink issue

Hi,

for some reason i must support an old version of WP (v3.4.2) and i can not upgrade it.

so i decided to install a copy of this website on my local development machine (ubuntu 13.10).

when i use permalink set to COMMON (http://myweb.art/?p=123), i can access to page on the front end.
but if i set the postname as permalink structure (http://myweb.art/sample-post/) i got a message that such page is not reachable :
Not Found
The requested URL /services/ was not found on this server.
Apache/2.4.6 (Ubuntu) Server at myweb.art Port 80

any idea how to fix it ?
i thought problem would be located in .htaccess but i do not see anything special there.

thx for help.
A.

[Moderator Note: No bumping, thank you.]