Blog not detecting .htaccess file..

Hi.. Guys..

I’m running a WordPress 2.8.4. blog on my website..

The URL of the blog is as follows..
http://www.pokernationsx.com/blog/

I’m unable to edit the Permalink.. I mean after changing the settings of permalink as CUSTOM –>> %postname%;

I shd get a message to edit the “.htaccess” file which is not happening..

Also I created a .htaccess file manually and dumped into the public_html folder using http://ftp..

I gave the file permissions of 755…

But, My blog is not detecting the .htacess file., so I’m unable to edit the permalinks..