Based off of the path you provided for your install directory, I'm going to assume you are using the default setup at www.yousite.com
.
The problem looks like you are using the htaccess
rules for a wordpress
site installed on a subdomain
and not the default rules.
You should try and use the default wordpress rules below instead.
# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>
# END WordPress
You can see here the different htaccess configurations to use for certain types of WP installs. http://codex.wordpress.org/htaccess
Wordpress has a lot of internal stuff that works with htaccess so I would try and use the recommended htaccess configs.