Rather than watch apache spawn zillions of processes and tie my server up in knots, I have been looking for a way to run WordPress that enables the use of permalinks, which if course need a .htaccess file. After all, we are regularly told by SEO people to include the post name in the slug.
Nginx is probably the front runner - anything that runs Facebook and WordPress.com must be pretty robust.
So can the nginx Compatability plugin detect and permalink settings in some way?
[I really don't know why the necessary redirect is not done in the coding rather than depend on .htaccess but there you are .....:-()