Unfortunately I don't usually play with my .htaccess files. I let my IT guys do that :) Their may be someone able to help. It may be good to post the question either ssbits or in teh installing silverstripe forum
I will also check with my host admin - maybe it is something screwed up on the server. I had a problem with rewrite on my 2.0 Gallery on another site on the server. You have been a great help in my decision that Gallery will probably be my way out of this problem.