WordPress permalinks not working – htaccess seems ok but getting 404 error on pages

I updated the permalink structure to /%postname%/ and this updated my .htaccess with:

# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>

# END WordPress

But I still get 404 errors on the pages. Are there any other settings that I need to change?

Edit: if it helps the apache log seems to be looking directly in the permalinked folder. I.e.:

[Wed Oct 16 11:12:32 2013] [error] [client xx.xx.xx.xxx] File does not exist: /var/www/exampledomain/news, referer: http://exampledomain.com/

For other people landing on this page – Another issue could be (If you are using Apache as your web server) is your httpd.conf or your sites-available/sitename.conf file needs editing.

Your web directory will need to allow the .htaccess file to override it’s settings.

look for your web dir in the file – it will be in the bulk of the conf file or segregated into a VirtualHost section.

<Directory /path/to/site>
     #add the following setting to allow .htaccess in your web dir to work
     AllowOverride FileInfo

     #other settings ---

</Directory>

This will allow you to set up WordPress URLs however you want, within WordPress.

Use the least amount of privilege at first. If this doesn’t work then replace AllowOverride FileInfo with AllowOverride All