I have just transferred my blog from my local webserver to Amazon EC2 Free Linux server, Everything seems to be working now except for permalinks, I disabled and re-enabled them
On AWS my file was in a slightly different location:
sudo nano /etc/httpd/conf/httpd.conf
After changing AllowOverride None to AllowOverride All in both locaitons and restarting with sudo service httpd restart permalink redirects work great!