Contacted my host and the reason it wasn't working is that PHP engine had to be switched from CGI mode to ISAPI mode.
Thank you dacoder and all those who contributed to other wordpress discussions.
Here are my rules in case anyone needs them.
RewriteRule ^/(?!index\.php|wp-|xmlrpc)(.*)$ /index.php/$1 [I,L]
#RewriteRule ^/(?!index.php)(?!wp)([^\.]*)$ /index.php/$1 [I]
#RewriteRule ^/category/diy /?cat=3
#RewriteRule ^/category/general /index.php?cat=1
#RewriteRule ^/category/house_reno /index.php?cat=4
#RewriteRule ^/category/pets /index.php?cat=138
#RewriteRule ^/category/photography /index.php?cat=5
#RewriteRule ^/page/([^/]+)$ /index.php?page_id=$1
#RewriteRule ^/tag/([^/]+)$ /index.php?tag=$1