One of the more frustrating things admins seem to encounter with Joomla is trying to get rid of the "/index.php/" from Joomla URLs. There are some server configurations that will throw a Error 500 Internal Server Error / Server Misconfigured page when you move htaccess.txt to .htaccess, but fear not!
Rather than go into *WHY* this is happening, here's how to solve the issue:
After changing htaccess.txt to .htaccess, open the .htaccess file in the root folder of your Joomla install with a text editor.
Close to the top, you should see this part:
# READ THIS COMPLETELY IF YOU CHOOSE TO USE THIS FILE!
# The line just below this section: 'Options +FollowSymLinks' may cause problems
# with some server configurations. It is required for use of mod_rewrite, but may already
# be set by your server administrator in a way that dissallows changing it in
# your .htaccess file. If using it causes your server to error out, comment it out (add # to
# beginning of line), reload your site in your browser and test your sef url's. If they work,
# it has been set by your server administrator and you do not need it set here.
## Can be commented out if causes errors, see notes above.
## Mod_rewrite in use.
Go to the line "Options +FollowSymLinks" and add a "#" to comment it out as below.
Your Joomla site should now work correctly without the "/index.php/".