In the guide I wrote here:
I state at the bottom how to get permalinks working.
There have been a few posts here saying people cannot get it working so I just installed a new test blog on my xampp and did just what my page above says.
And it works:
I'm using the following on WinXP
ApacheFriends XAMPP (basic package) version 1.5.0-pl1
+ Apache 2.0.55
+ MySQL 5.0.15 + Bug #13783
+ PHP 5.0.5 + PHP 4.4.1-pl1 + PEAR
So permalinks .. do they work for you on your xampp ?
If not, which package did you install and which OS are you using ?