Pretty Permalinks issue with 2.3

I just upgraded nwdsa.org from 2.0 to 2.3. The permalink structure in 2.0 was set to Custom, /news/%year%/%monthnum%/%day%/%postname%/. The best I can do with 2.3 is “almost pretty” – /index.php/news/%year%/%monthnum%/%day%/%postname%/. If I don’t have /index.php in the path then the only other permalink structure that works is the default (?p=1). Any other permalink structure will only display the homepage, even though the URL in the address bar is changing. There’s probably an easy fix, but I can’t figure it out.

Here’s my .htaccess:

# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteCond %{REQUEST_URI} !index.php
RewriteRule (.*) /index.php/$1 [L]
</IfModule>

# END WordPress

I’m not sure why it was written that way, but I’ve tried the more traditional

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

# END WordPress

as well, to no avail. I’m not too familiar with PHP or .htaccess, so if there’s something else I should try then I’m welcome to ideas.