Submitted by rw on Tue, 07/24/2007 - 09:10.
From the Imagecache project page
Drupal 4.7.3 generated a .htaccess file in the public files folder. If you are running Drupal 4.7.3 [or later, apparently] the following lines in that .htaccess file need to be changed.
Options None -> Options FollowSymlinks
RewriteEngine Off -> #RewriteEngine Off.
Do not delete this .htaccess file as Drupal will regenerate it.