404 Error After Creating Pages

I tried out the WP 1.5 feature of creating Pages but after creating the page, I cannot view it. There is a note in the codex about updating .htaccess. First of all I checked the permission of the file and it is writeable. Second of all, I don’t know what to update it with. Is that my problem? Here is my blog: http://intheouter.net. The pages link as you can see gets you a 404 error. Any help is appreciated.