The compatibility test only checks to see if your server is running Apache. It does not check to see if your hosting provider supports .htaccess If you are sure you have configured the software correctly, double check with your hosting provider that they support .htaccess
I called GoDaddy and got it to work...they told me it simply might take an hour for the change to take effect. However, I was really hoping that I could get it going on the other ISP. I will call them....plus I also have a question into CoffeeCup and maybe they can see something.