I have the exact same issue on how to remove index.php from the url. Here are the steps:
1. I first enabled the rewrite in
Admin>System>Configuration>Web>Search Engine
Optimization>Use Web Server Rewrites
2. I also enabled mod_rewrite in apache2 in the terminal with: sudo
a2enmod rewrite and then restart apache2 with sudo /etc/init.d/apache2
restart
I checked that mod_rewrite is enabled in the directory: /etc/apache2/mods-enabled/rewrite.load
At this point, I can properly display the homepage without the index.php
in the home url. All is well until I click on any product category or
any link, the index.php in the url is removed but I receive a 404
error. If I manually type in the index.php in the address bar, I can
navigate to the page.
After searching the forum on this problem, people having the same problem resolved it with .htaccess. Here’s what I did:
3. I copied the content of .htaccess.sample in the magento root and
paste it to a new file called .htaccess in the same directory.
4. I uncommented the statement: “RewriteBase /magento/” and change it to
“RewriteBase /” since my magento directory is already the root
This didn’t resolve the problem, I still have the 404 error. I search the forum again, and tried:
5. I issued the command in terminal to edit http.conf: sudo gedit /etc/apache2/httpd.conf and paste the following in the file
# Each directory to which Apache has access can be configured with respect
# to which services and features are allowed and/or disabled in that
# directory (and its subdirectories).
#
# First, we configure the “default” to be a very restrictive set of
# features.
#
Options FollowSymLinks
AllowOverride All
After restarting apache2, I’m still having the same 404 error. Another search in the forum and
6. I refreshed the catalog cache in Admin>Cache Management>Catalog Rewrites>Refresh
But I still have the same 404 error when I clicked on the category page
or any other links in the homepage. What could be the problem and how do
I fix this? Thanks.
Source: http://www.magentocommerce.com/boards/viewthread/22199/