Looks like with wordpress 1.5 you dont need it it says it does everything for you
Best bet is to upload a blank htaccess file into your wordpress directory and chmod it 666. Then enter the perma-link structure you want and Wordpress will write a new htaccess file.
I use a permalink structure like this:
/%year%/%monthnum%/%day%/%postname%/
You need the dates if you plan on using the calendar. The codex has other examples http://codex.wordpress.org/Using_Permalinks. I haven't had a problem since I started using this technique.
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