my site works fine with a blank or non existant .hta file. my mod rewrite rules are
RewriteEngine On
RewriteBase /wp/
RewriteRule ^archives/category/(.*)/(feed|rdf|rss|rss2|atom)/?$ /wp/wp-feed.php?category_name=$1&feed=$2 [QSA]
RewriteRule ^archives/category/?(.*) /wp/index.php?category_name=$1 [QSA]
RewriteRule ^archives/author/(.*)/(feed|rdf|rss|rss2|atom)/?$ /wp/wp-feed.php?author_name=$1&feed=$2 [QSA]
RewriteRule ^archives/author/?(.*) /wp/index.php?author_name=$1 [QSA]
RewriteRule ^archives/([0-9]{4})?/?([0-9]{1,2})?/?([0-9]{1,2})?/?([_0-9a-z-]+)?/? ([0-9]+)?/?$ /wp/index.php?year=$1&monthnum=$2&day=$3&name=$4&page=$5 [QSA]
RewriteRule ^archives/([0-9]{4})/([0-9]{1,2})/([0-9]{1,2})/([_0-9a-z-]+)/ (feed|rdf|rss|rss2|atom)/?$ /wp/wp-feed.php?year=$1&monthnum=$2&day=$3&name=$4&feed=$5 [QSA]
RewriteRule ^archives/([0-9]{4})/([0-9]{1,2})/([0-9]{1,2})/([_0-9a-z-]+)/ trackback/?$ /wp/wp-trackback.php?year=$1&monthnum=$2&day=$3&name=$4 [QSA]
RewriteRule ^feed/?([_0-9a-z-]+)?/?$ /wp/wp-feed.php?feed=$1 [QSA]
RewriteRule ^comments/feed/?([_0-9a-z-]+)?/?$ /wp/wp-feed.php?feed=$1&withcomments=1 [QSA]
my error log gives
[Fri Apr 16 19:13:38 2004] [alert] [client IP ADDRESS] /home/eb3604/public_html/wp/.htaccess: RewriteRule: bad flag delimiters