Redirect troubles with moving index

Currently I have my WP in mysite.com/blog. I was using .htaccess to redirect it to mysite.com after I got rid of my homepage. I upgraded to 2.6.3, and decided to update my permalink structure to be search friendly instead of the default. Then I used WP settings to move my index to mysite.com from mysite.com/blog instead of .htaccess.

Everything is working great and I couldn’t be happier. However, I noticed that other sites that are linking to me are linking to mysite.com/blog and when I click the link it takes me to my blog directory, showing my folders and files. So, unwittingly I dropped .htaccess file in there to redirect to the index, but it didn’t work and messed up my blog when I went to mysite.com. So I read another suggestion online to stop my directory from displaying my files and folders and I emailed those sites that I know are linking me for sure to change the link.

So, is there a way to redirect people who have bookmarks and links set to mysite.com/blog to the root safely?

Reading online, I guess html redirects are bad, and I am assuming using .htaccess was screwing something up, though I might have done it wrong because I used Redirect permanent ‘/blog http://www.mysite.com’

Any expertise and wisdom would be appreciated.