Problem with changing Permalinks

Hi

I have installed WordPress on a VPS with DirectAdmin panel. I’m trying to change the permalinks structure for some of the pages I have made in WordPress website. However, no matter what structure I choose, it only shows the “slug” I have chosen for that page. In fact, it is either the default “ugly” url or the “clean” one with the slug I have chosen at the end. I cannot have any other alternatives of “common settings” in practice.

By the way, I have already changed .htaccess permissions, temporarily setting it on 777 and I have made sure that the mod_rewrite module is enabled. One thing I need to say is that I have installed WordPress inside a folder in my public_html directory. As such, I have made a duplicate of .htaccess file and have put one in the Public_html folder as well. I have also tried changing the permissions of both .htaccess files to 777, even though I think that might not have been necessary.

I feel frustrated as I cannot find any clues to this problem.

Any ideas are greatly appreciated.

Thanks in advance.