I've tried to use the permlink in 1.2.1. I didn't have any experiences regarding previous versions.
So I went to the related admin page and used the standard /archives/%year%/%monthnum%/%day%/%postname%/ for my test, and eventually would use it.
And so I was given the lines to add into the .htaccess file in my home directory, inside /public_html/. I appended the lines, saved the file and proceeded to viewing the blog.
The links of the posts and categories are pointing to the permlinks, but the links would point me to an Error 404, and upon checking the /blog/ folder there is NO archive folder created. So that's why its wrong I presume. (Do I have to create it?)
My question is, what have I done wrong? The instructions given are really bare and I searched the forum for "permlinks" with little helps.
If there's a documentation about using permanent links in WordPress that I'm missing, I would love to know it.