Problems moving site to new directory on server

I’m following the Codex directions (located here to move this site:

http://parsonsnose.com

I completed the move through #9. I was using permalinks at the old location, and now that I’ve moved it my page links don’t work. Although the site now opens up in the main directory (It used to be located in a subdirectory), my permalinks are not working. Direction #10 states:

If you are using Permalinks, go to the Administration > Settings > Permalinks panel and update your Permalink structure to your .htaccess file, which should be in the same directory as the main index.php file.

I am staring at the Administration > Settings > Permalinks panel and cannot for the life of me figure out how to do this. I have downloaded my .htaccess file and opened it in a text editor to see if that would help, and it doesn’t. There isn’t a server path in my .htaccess file at all.

What do I do next? As you can see I have a lot of sub pages that have to exist somewhere. I did perform a database backup before the move, should I restore?

Thanks for any help.