Unable to get Permalinks to work other than default.

Hi, I’ve recently purchased Enfold theme. I’ve managed to create a test site. However, when I tried to use Permalinks, I’m unable to get it to work other than the elementary default http://www.mydomain.com/?p=123

I’ve spent 2 days trying to figure out and searching google, tried every method I found but failed. At the minimum, I need “Almost Pretty” permalinks to work – http://codex.wordpress.org/Using_Permalinks#PATHINFO:_.22Almost_Pretty.22

e.g. http://mydomain.com/index.php/post-name/

I’m running WordPress Version 3.5.1 on Windows 2003 Server IIS6 and PHP5.

I’ve added the lines to PHP.ini

cgi.fix_pathinfo=1

cgi.force_redirect=0

PATHINFO is working on my server, I’ve tested with something like http://www.mydomain.com/phpinfo.php/HELLO_THERE

However, http://mydomain.com/index.php/post-name/ don’t work.

I’ve also tried the 404 method as described here- http://anaestrada81.wordpress.com/2008/10/03/almost-pretty-permalinks-for-wordpress-and-iis6-and-front-page/

The method also requires .htaccess file to be server writable. However, I can’t find the .htaccess file in the root directory of WordPress. I don’t want what this file should contain. I’ve tried adding the sample file in http://codex.wordpress.org/Using_Permalinks#Creating_and_editing_.28.htaccess.29 and assigned total control rights to “everyone”. After this, resetting the permanlink settings don’t appear to update the .htaccess file so I’m not sure if this file is needed in the first place.

Will appreciate any help. thanks.