Now that you've answered, I can see where I should have asked it better or more completely. I'm running xampp and do have the rewrite module running. I'm giving an access forbidden error 403. I'm runing Windows 7 x64 and have this folder on a separate drive, but my entire website and database works just fine with everything else. If I remove the htaccess file, the index page comes up with no problem. No sure if I must add something special to my localhost that I did not have to do to my web server. I'm not currently using rewrites anywhere else.
Thanks in advance!