RyChannel.com

Check this out for the answer.

http://mediaforministry.org/768/bluehost-permalinks/

So my hosting plan and domain were about to expire with GoDaddy, so I decided it was time to move to a different hosting provider. GoDaddy was starting to cost more and was getting more and more annoying to use… It could take up to an hour just to change a simple setting, so I found Bluehost and signed up for the one year hosting plan. Once I figured out the process of transferring my domains, I realized that would be the easy part.

Once I got the domain’s transferred, I downloaded all of my SQL databases and files from GoDaddy and wen’t through and uploaded what I thought I needed. I had to do some reconfiguration of the wordpress config file as I wasn’t able to use the same database name as GoDaddy had assigned. Once I was able to access my home page, I didn’t really bother looking at any of the other pages on the wordpress site and decided that it was a success. I was WRONG, it ends up, none of the Permalinks were working, so if I tried to click on one of my posts or any of the other pages in the site (excluding the site admin) I would get a 404 error or something similar. I have managed to find a solution and will post the link in a separate post as well.

If you’re having the permalink issue on Bluehost, follow these instructions.
http://mediaforministry.org/768/bluehost-permalinks/