I am trying to update the permalink structure using the back-end and Settings -> Permalinks. The .htaccess file is not updating.

I have given .htaccess full access with chmod -R 777 .htaccess and still, Wordpress says that the permalinks are updating, yet they aren't coming through. When I click, I'm still getting 404s from apache2.

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Have you checked to see if .htaccess is actually updating or not? If the rules are being put in, then you may not have mod_rewrite enabled, otherwise you can put the rules in manually. –  SickHippie Mar 12 '12 at 19:21
Looks like I needed to enable the apache2 module rewrite...silly me, basic question. DISREGARD! :) Thanks for the help. –  dmanexe Mar 12 '12 at 20:04