Guys I am a newbie with WP and having the same problem with the error: "You should update your .htaccess now." Now I have been reading posts regarding this problem and everyone seems to know where the file is. I don't. Is it supposed to be in the root folder of WordPress? If it is I don't have it. Plus my test version on my local testing server does change the permalinks options without the error, and there is no .htaccess file there either. Any thoughts? I am hosted at a Linux server running PHP Version 4.3.11 and MySQL 5. Please note that I am new to the configuration options of PHP and MySQL. Any help will be appreciated.