OK, here is what I got back from them:
Dear (name removed),
Thank you for contacting customer support.
Our hosting does support mod_rewrite functionality. Please note that customer support does not provide tutorial or troubleshooting information regarding third party applications. Please let us know if we can help you in any other way.
Learn more about our Shared, Virtual-Dedicated, and Dedicated hosting: Click here
Sincerely,
Robert B.
GoDaddy.com
Customer Service Representative