I am installing Drupal 7 on a subdomain example.com/exampledev2 and I am running into problems with .htaccess. Meaning when I put the files in the root for the first time I get a 500 Internal Server Error, but if I rename it to .htaccess_off or something I can begin installation. Then when I get to the last step, after filling in the site info and creating a user, I click the continue button and I get a Error 500 Internal Server error. I am assuming this has something to do with having .htaccess no longer working, but I can't turn it on, or I get the error before installation. Any advice on how to change the file so I can use it?
EDIT: This is the .htaccess file that finally worked for me:
EDIT: I think the problem was not totally the htaccess file. The file did "direct" me to a WSOD page if it wasn't fixed, but I don't think it was the reason that when I got to the end of the install process I got an Error 500 screen. I think this was cause by having incorrect access to the database? During the process of install I may have changed the password, and then not updated it in the install.php process. Anyways I got the site up and working and will give some credit to MPD because it is a good answer.