Mac OS X Leopard Installation – No wordpress page displayed, only index.html

Problem: Any preview of a page leads to display of “index.html” file, not of any wordpress page.

I have taken the following steps, but still it does not work:

1. Verified that PHP 5 is running.
2. Used Sequel Pro to verify that the MySQL database is being populated with the various blog entries.
3. Directory Stuff:
3a. Created a new folder only for WordPress /Library/WebServer/Documents/blog
3b. Moved all of the WP filed into the /Library/WebServer/Documents/blog folder
3c. From the WP folder, removed the index.php file back up to the same directory containing the index.html file e.g., /Library/WebServer/Documents/
3d. Modified the /etc/apache2/httpd.conf file to have apache2 to point to index.html index.htm and index.php instead of the default setting which is only index.html
3e. Modified the WP admin control panel so that the WP directory is http://hostname/blog/
3f. Verified that the MySQL settings for the wordpress database have the site URL set at http://hostname

What is really strange is that the wp admin control panel is accessible, and also the dashboard for a test user.
It is simply that when one tries to “visit site” or “view page” it always takes me back to the old index.html file.

I though I would see if anyone has any ideas before I tear the entire thing down and start again.