WordPress Permalinks

[girishbm]

I am trying to set my permalinks to custom : /%postname%/
When I look at posts, the link on top seems good. But when I try to use the link in another browser I get 404 page not found.
The default works fine.
I have tryed to create an .htaccess file but it didn't help.
.htacess file code is follows like this
<IfModule mod_rewrite.c>
ErrorDocument 404 /index.php?error=404
RewriteEngine On
RewriteBase /
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>

Can someone advice?

[Bonesnap]

When you set your permalinks in WordPress, it will create an .htaccess file for you, so you shouldn't have to create one yourself. Also, when you save them, save them twice. There are instances where saving them twice is required, so I just do it all the time now.