I have the same problem. The .htaccess file is visible in my main public_html directory but does not show in my addon directory where I installed the WP 3.0 files.
I have instead shortened the excerpt length in twenty-ten them functions.php page so that “Continue…” will show up after 10 characters and thus be on all pages in the category instead of just some. I also added text to the category.php to instruct readers to click on page title to see complete listing (as my readers would possibly know this intuitively). My question is there a chance these changes will be overwritten when run upgrades? I’m using the default ‘twenty-ten” theme that comes with 3.0 WordPress. Do I need to rename the theme to protect my changes?
@fiatweb I have the reverse problem. I would like my entire post to be included on the category page. Is there a way to stop the theme from chopping off the post?