I also have a problem with WP 2.0 and the .htaccess file. It’s odd but all my permalinks work fine, even though WP is not generating an .htaccess file. I have looked all over the place for it and it doesn’t exist.
It’s great that my permalinks work, the problem is that my main page returns an internal 404 when it’s accessed with a trailing slash. E.g.:
myblog.com/index.php
works fine, but
myblog.com/index.php/
gives me an internal 404. This mystifies me. Can anyone give me some tips?