trouble with wordpress permalinks from my litespeed server
i have been having some trouble with the permalinks on my site, and I was hoping that someone here may be able to help me learn what is causing the problem. i have been working on a website recently using the Thesis framework and for some reason, every page gives me a 404 error when i change the permalink settings to anything other than default. The links change within wordpress from the default style to mydomain.com/about, but I can only view the content when the default setting is marked. After extensive troubleshooting with my server's support team (Wiredtree.com), they are convinced that the problem lies with wordpress and there is nothing wrong with my server configuration that would be causing the problems. In the Wordpress IRC chat, everyone was telling me that it was definitely a server issue. My htaccess file in my root directory looks right. When I break it, I get a whtie 404 page, and when it is reading like it should, I am getting a 404 error that includes my wordpress stylings. It should also be noted that I have another installation of wordpress in a blog subdirectory that is handling permalinks just fine. Can anyone help me learn how to go about finding a way to fix this?
Can someone please help me learn what is causing this error? I will happily offer anyone who can provide material help $20 via paypal if you pm me.