I have a Windows server host and wordpress is able to write the .htaccess file. I think I have fixed this problem (FINALLY!). I had tried adding
AllowOverride all
in my http.conf (specifically for the blog directory).
That seems to have caused the 403 problem. I removed that section of the http.conf file and made added to my root directory
AllowOverride all
(previously AllowOverride None).
So it STILL didn’t work, I got 404 errors when using permalinks. I thought since I was using Apache on windows that I could use mod_rewrite. Anyway, I gave up and got it working with /index.php/ in my permalink structure.
Any idea why it doesn’t work with Apache 2 on Windows?