Thanks for the clarification. The site is arcannahomes.com. We are installing a WP blog for them and want it to run in the subdirectory /news/. We want to provide a link to it from the primary site which resides in the root directory. We do not want to replace the index.php file in the root because that points to the primary site.
After several install attempts, we were able to get WP running in this directory. However, the Posts and Pages were not resolving to the proper path, even though the settings within the WP interface include the path [eg. arcannahomes.com/news/].
In attempting a resolution, we modified the permalinks to /%category%/%postname%/. We then updated the .htaccess file to include the script that was offered.
Currently the subdirectory is experiencing an internal server error. We have removed the .htaccess modification but are still unable to log back in. We will reboot server and restart computer and clear browser cache and re-attemt.
It is obvious that the current issue is determining the proper script and location for the .htaccess (root or sub dir?). Where do you recommend we install that file and with which script based on the permalink structure would work in this instance.