pretty permalink issue

Hi All,

I hope someone can help. I’m having trouble getting my pretty links to work in wp.

I’m running apache (2.0.63) & php (5.2.13) on a windows XP pro PC at the mo whilst I develop the site.

All my posts are within:
category/category/post

for example:
section/sub section/post name

So I’ve set my custom structure as:
/%category%/%postname%/

Mod rewrite is enabled. Within localhost, I’m running my install within the wordpress dir:
http://localhost/wordpress/

My .htaccess file is as follows;

# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /wordpress/
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /wordpress/index.php [L]
</IfModule>
# END WordPress

I can see the links have changed, however, when I click the link I get a HTTP 404 Not Found page.

Where the heck am I going wrong?

Many thanks in advanced