Ah, I just needed to load the mod_rewrite module. That did it. Thanks everyone for the help.
Sorry for the delay in reply. I was out of town for a week. I don’t have an .htaccess setup in my doc root folder. The .htaccess that sits in my blog directory is as follows:
# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /blog/
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /blog/index.php [L]
</IfModule>
# END WordPress
