szysz, thanks for the link, it does contain some information in there for stepping into what may go wrong.
Ipstenu, thanks for the specific solution and it works great!
I set allowoverride to All, but get the following error message not presence before:
C:/WebEn/Apache2.2/htdocs/.htaccess: Invalid command ‘RewriteEngine’, perhaps misspelled or defined by a module not included in the server configuration
I then uncomment the following in httpd.conf:
#LoadModule rewrite_module libexec/mod_rewrite.so
Resolved!
Many Thanks!