Sometime this next week i hope someone has the answer
Instructions on how to configure your server is not really what the forum is for, but that being said, it's a nice bonus that you can usually easily find some of that information here.
I guess you must have complete control of the server if you're playing with httpd.conf, so I'll take a guess at it. You can try this if you like;
# First, we configure the "default" to be a very restrictive set of
# AllowOverride controls what directives may be placed in .htaccess files.
# It can be "All", "None", or any combination of the keywords:
# Options FileInfo AuthConfig Limit
- restart httpd after saving the changes. Assuming mod_rewrite is working correctly, pretty permalinks should work fine now.
If you're working on a ubuntu server that uses symlinks for virtual host configuration, you should only need to navigate to sites-enabled-default and place the 'AllowOverride All' directive in the virtual host configuration file and restart apache to get permalinks working. Those are pretty general instructions, but I think that should make things work.