Check with your hosts that mod_rewrite is running on your server.
Thank you for the advice but unfortunately GoDaddy said the mod_rewrite is running on my server. Is there possibly another way I can get the categories working?
No. Is your .htaccess file being updated? If so, what are its content?
I have no idea and I am not even sure where the .htaccess file is.
It should be in your root WordPress folder.
In my main folder I have:
_db_backups
cgi
stats
wp-admin
wp-content
wp-includes
I can’t find it in any of those folders
.htaccess files are often hidden by default in most FTP clients. Please ensure that your FTP software is configured to show all files.
I found it using FileZilla. I can’t open it but the file size says 235 and last modified on 3/15/2012
You should be able to download and/or view it using Filezilla. Try resetting your custom permalinks back to the default setting via Settings -> Permalinks & deleting the .htaccess file. If this works, then review Using_Permalinks before setting a custom permalink structure back up again.
It downloads the category.php. So I am supposed to delete this file after changing my permalinks back to default? Seems a little scary to me.
Sorry? What downloads category.php?
Under FileZilla where the .htaccess file is I right click on the .htaccess file and it downloads to my desktop. When I go to my desktop the file it downloaded is the category.php file
Uh!? Now that is downright bizarre! Where exactly is this .htaccess file that you are trying to download?
This is really weird. I downloaded the .htaccess file using FileZilla and it said it was on my desktop but I cannot find it anywhere. I then used FireFtp and downloaded the file. It also says it’s on my desktop but I cannot find it. It is almost ghosted out on the FireFtp window. But I can open it from there by right clicking in FireFtp and this is what is in the file. I have no idea how to get to the file on my desktop
# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ – [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>
# END WordPress
Well, at least the contents of the file look OK. Are any of the preset permalink structures working?