I can switch to default and everything works, but once permalinks is set i get the 404. The thing is I've been using permalinks for years without problems. I can't find what went wrong as I had not made any changes in weeks. It happened all of a sudden.
I tried finding the .htaccess (showing hidden files) but to no avail.
Does wordpress update itself perhaps? I notice there's an admin bar at the top of my page when logged in...