I created a LAMPed Ubuntu 12.04 droplet, fresh from the menu. Then added fred as a root user. Logged in as fred I installed Wordpress. Everything looks great, I can add posts to the blog, but ...
I cannot change the permalinks setting in the Wordpress dashboard without getting a "You should update your .htaccess now" error. There IS NO .htaccess file. So I created one in /var/www/ with the suggested settings from the Wordpress error. After restarting the apache service I still get the error when attempting to change the permalinks setting. I've chmodded /var/www/ to 777 - still get the error.
I'm about to go bald through pulling out my hair. Any suggestions?
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