I am running Xampp locally to build and test some wordpress blogs and ran across a strange problem I have not been able to answer.
I originally had one wordpress blog and everything was running smoothly. I changed to "pretty" permalinks and had no problems.
Then I started another wordpress blog in a new directory and this time the permalink structure wouldn't update. I click on the "day and name" permalink radio button, click "save changes" and then it says "permalink structure updated" when it really hasn't been and the default permalink radio button becomes the selected on again automatically.
This was driving me a little crazy. I did some searching and it would seem to be the problem addressed http://codex.wordpress.org/Using_Permalinks#Using_.22Pretty.22_permalinks and http://www.mydigitallife.info/2006/03/08/wordpress-permalinks-does-not-work-in-xampp-setup/ but these solutions did not fix the problem for me. My original wordpress blog still runs find and the permalinks work and update correctly. But my other ones continue to instantly revert back to the default. I'm not sure why.