Cannot update .htaccess for WP subdirectory install

I have installed WP 4.1.1 and need my permalinks to http://directory.feltabbizcentre.com/sample-post/
instead of the default http://directory.feltabbizcentre.com/?p=123

I was instructed by WP to update my .htaccess file with the following:

<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ – [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>

But everything I do, yields no results (change) and I am prompted as follows:

You should update your .htaccess now.

my website can be found at http://directory.feltabbizcentre.com or http://feltabbizcentre.com/directory/

What do I do????
I need this updated urgently!
HELP !!!