Thank you for responding i finally figured it out. I found the link to emilyrobbins dot com/how-to-blog/how-to-configure-wordpress-to-create-search-engine-friendly-urls-for-permalinks-242.htm
Her post was great. A link to her post should be right next to the custom directions. When i originally changed the custom setting i did not add the .htm to %postname% It should have been %postname%.htm Everything is working now. Thank you and Emily.