I managed to get my navigation working following the tutorial. And it seems to work just fine. Except if you go directly to a sub page it comes up with a 404 error.
Thanks @ben, my code matches up with yours but still having this strange issue. Hope a cause is found before I get to far into the site and have to redo it.
@brad, as a total point of interest have you tried adding to the first line of your .htaccess file the directive to follow symbolic links as maybe your httpd.conf file is configured a little different. Try adding as line 1 Options +FollowSymLinks
Not 100% sure if it will do much but cant really harm too much either.
Glad it worked, lol, you can look up apache symbolic links if you want more information, however most clean apache builds i have made myself i would have that already setup in the httpd.conf file as it is better for server security. @patrick would probably have to add that as a default to the .htaccess file for others if they have a similar issue.