I dumped 1.0.11 and just installed the beta 1.5 to play with, my site was performing so bad that it fell of google, so it wasn't much reason to keep it around. Got 1.5 installed tried the SEO feature and it isn't working with my site.
Anyway I installed a different .htaccess on a site that was having problems and it is working great... I have installed a 3rd party SEF and it is working also. Check out the pretty good URLS.
http://martydewitt.com Plus had a production site that was having problems with
http://www.domain.com not resolving all the time. Installed the same .htaccess and it fixed it too.
Now both sites are 1.0.10 I won't be going to 1.0.11 anytime soon on either of them.
If you;d like a copy of the .htaccess I can dig up a link to it for you.
Best luck
Chris