After server change, .htaccess and permalinks are issue

I have recently had to change servers to a “Virtual Server” (hosted by ‘difficult’ German host Strato.

The changeover went smoothly, and the site loaded fine. Until I tried uploading an image to a new post. Was told first that it was not possible to upload to the specific folder, and after a couple of tries, that the file could not be moved. Then nothing.

Checking the documentation, I tried regenerating the Permalinks. Was told that the .htacess was not writeable. I fixed the permissions, and then the Permalinks dialog reported that the permalinks had been successfully updated.

But, still no image uploads possible (all the permissions were OK for the Uploads sub folders.) And then I realized that the .htaccess file was NOT updating at all, even though WP said it had fixed the permalinks.

That being said, I tried fiddling with the kind of Permalinks… the old server required an “index.php” added before the custom links. I tried changing this, and thereafter NOTHING worked except the frontpage.

This is my blog: lightworkerarts.com . Ideally I would like to get rid of the “index.php” in all permalinks, and also then use WP to upload to the correct folders. (Dreamweaver had no problem uploading, but that is less efficient.)

I would be very grateful for some help. The host Strato has absolved all responsibility, saying that if I have chosen a Virtual server package, I am on my own, and they do not provide support.

Many thanks
Peter