I'm having a real hard time getting my 1.3 install to work. I've moved my site over to Media Temple which does support mod_rewrite so no problem there.
What happens is this - I go into options > permalinks and set up a my rewrite rules. I copy those into my .htaccess file. I upload the file - and bang, 403 on every page. Remove the .htaccess and everything is fine? I am putting it in my root.
I tried setting permissions on the file to 766 but WP won't write to it seemingly. Is this an Alpha problem? I have no idea how to debug this...