Post-Permalink 404

I’m currently working on setting up a blog, and I want to have good-looking permalinks. However, when I change the permalink structure (via the admin control panel) to anything but the default, clicking on any of my links to other posts or pages gives me a big ol’ 404. When it’s the default, this doesn’t happen, and I can navigate around as I wish. Anything else, however, and I’m stuck at only the front page.

I’ve updated my .htaccess, and checked numerous times to make sure it’s in the correct directory. I do believe its content is corret:

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

# END WordPress

I’ve checked, and the server does have mod_rewrite– I’m really stumped as to what the devil is going on. Could anyone help?

Thanks.