Well I have solved the problem by using another directory for wordpress.
I installed wp-united and all was fine.
However, I simply tried to change the permalinks to the numerical type. It didn't work. I tried to revert the changes back to how it was working fine before. I changed the links to default and removed the .htaccess.
Why then am I now getting a 500 error?
Any obvious reasons? It all seems stupid to me.
Thank you for any help given.