Okay Jhazzi... Here is what they won't say but I will... ;)
Your host is LAZY. All they NEED to do is follow the link I provided. Wait til the NET is quiet: Around 'Ghost' time 1am-3am and rebuild thier/your Apache PHP environment to support Dolphin. Until they do this your htaccess file is like a 'wanna be' fix to customization of Host Environment.
Dedicated is BEST, VPS is easily possible, Sharred is ALSO possible but 'resellers' are either 'lazy' or 'entrprenuers' and not 'GEEKy'! I know this because 'Geeky' ALWAYs gets the JOB Done ;) And GEEKs RULE the WORLD :) Yes we DO!!!! ROFL
Now regardless of 'HOW GREAT' your CURRENT Host was before finding DOLPHIN and my Glourious BoonExTEAM; They will probably FAIL you time and time again. IF they are a BOONex Certified Host, and your having these problems then THEY should be ashamed and you PM me their details and I'll 'scare' them back to LIGHT :) LOL
Years ago... When UNITY first came to life... Well we were 'giving' away hosting per say... People get crazy, when they get all excited... Watch and 'experience' when HOOKIE drops into the global NET.
So from me to you, PLEASE get yourself a BOONex Certified Host for your COMMUNITY. You are GOOD PEOPLE and I want you around for a LONG TIME!!!
:) That's a good 300 marker ;)