Pages not displaying

Hi there
I have just started a new job and have never used WordPress for more than blogs. Now I have to manage 4 websites.
I work on a Mac with Mountain Lion, I have never before worked on a Mac.

I need to get the websites working locally so that I can do updates, the website has not been updated in a while so the wordpress is out of date as well as lots of plugins

I have downloaded all the files and created local databases with MySQL WorkBench.
I have changed the paths to reference the localhost and the front page works (images and ink shows correctly)
But as soon as I click on one of the link I get error 404
“Not Found

The requested URL /foundation/free-business-education/ was not found on this server.”

I have been told to delete my .htdocs and to refresh the permalinks.
I have refreshed the permalinks but I can’t find the .htdocs
The guy that previously managed the website use to work on Windows and used Xampp and I am not using Xampp.

Please can someone help me sort this out??