.htaccess

hi,

i am following http://codex.wordpress.org/Giving_WordPress_Its_Own_Directory and i am not sure that .htaccess is working properly it’s location is http://alonzofretwell.com/.htaccess while the wordpress location is http://alonzofretwell.com/wordpress.

i have edited http://alonzofretwell.com/index.php file as advised in http://codex.wordpress.org/Giving_WordPress_Its_Own_Directory but i am not sure that things are working correctly. permissions on .htaccess are 777. please advise.