Permalinks and Mod_rewrite alternative

I am using ipowerweb.com as a server, and apparently the server does not like the:
RewriteEngine on
format that the WP admin panel produces for permalinks.
After quite a lot of google scouring I have found a fix for that. If you are getting a 500 server error from your server.. try this style:
<IfModule mod_rewrite.c>
RewriteEngine on
RewriteBase /home/adailyad/public_html/
RewriteRule ^([0-9]{4})/?([0-9]{1,2})?/?([0-9]{1,2})?/?([0-9a-z-]+)?/?([0-9]+)?/?$ /journal/index.php?year=$1&monthnum=$2&day=$3&name=$4&page=$5 [QSA]
RewriteRule ^category/?(.*) /journal/index.php?category_name=$1 [QSA]
</IfModule>
Obviously the base path should be changed to suit your situation.
The only problem I am having with this now, is that it breaks all my html graphics in that directory when you click one of the links.