I can create pages and manage them just fine. They show up in under "Pages" on my site, but when you try to click 'em, all you get is:
Not Found
The requested URL /about/ was not found on this server.
Additionally, a 404 Not Found error was encountered while trying to use an ErrorDocument to handle the request.
If permalinks are turned on, when you create a new Page the .htaccess file should be writable (chmod 666) so that WP can write there the rewrite rules for the new Pages.
That would mean that WordPress cannot generate the new rewrite rules in your .htaccess file for the new pages' permalinks. There are two possible reasons for this. See:
http://codex.wordpress.org/Using_Permalinks#Fixing_.28.htaccess.29_Generation_Issues
::Edit:: HM, too slow again.