From what I am seeing from having the same issue with a client’s site, as well as perusing a lot of articles on this subject, GoDaddy Economy hosting plans use Windows IIS and not Linux. Therefore, you cannot use pretty permalinks on those type of GoDaddy servers.
Also, they literally superglue the htaccess file to the root and you cannot do anything with it, not even download it. I know this is done for security purposes, but not having access to the htaccess file in any way is utterly ridiculous. You should at least be able to set ownership permissions via the CP, so that you can at least upload/download it.
GoDaddy + Microsoft. Truly a marriage made in Hell.