Setting “AllowOverride” to “All” and uncommenting it should fix it. Setting it to none or disabling it causes Apache to completely ignore it. I also (just incase) set “AccessFileName .htaccess” too under the VirtualHost settings, but I think in general it’ll work without this.
Oh also: If Apache doesn’t start back up after making that change, as above, you’ll need to enable mod_rewrite. Dive back in to your httpd.conf file, PageDown a couple of times until you hit the cloud of lines starting “LoadModule” and uncomment:
LoadModule rewrite_module modules/mod_rewrite.so
You might need to change the last bit to whichever directory contains your modules, and it’s reletive to whatever you set “ServerRoot” is set to.
Other OSes might require you to do a “a2enmod mod_rewrite”; I think Debian needs this, and possibly Ubuntu.