Michael – no, while changing the code that warns about updating the .htaccess I screwed up and it didn’t warn new users their .htaccess had to be updated in the first place, also didn’t check if the file was writable.

BlakkJakk – did you install WP in a subdirectory? That seems to be causing problems for people. Make sure the paths in the .htaccess actually match what you have on your server.