Hiya,
I've installed the script and everything is working except SE friendly links.
Hi,
Have you turned on the SE option in your admin cp

It is

Yes, it's a 404

You using 1 & 1 as a host?
Also did you rename you .htaccess file?
Yes and Yes

Intresting. one and one are funny webhosts as ive used them in the past. Id email thier tech support. One and one use thier own control panels and stuff which may not support mod_rewrite correctly.
Regards.
if you have renamed htaccess.htaccess to htaccess then it is most probably problem with mod_rewrite - your server just doesn't support it.
I'll contact 1and1 to see, but it seems like another site I have it uses mod_rewrite and works fine.
Peace,
Lee