Apache mod_rewrite and AppController issues

I am having two problems, but they could be related.
I am just setting up cakephp 2.0 on a hostmonster isp account. The
helpful config page that cake defaults to shows everything is OK
except Apache mod_rewrite's 'pretty URLs' that are set up
in .htaccess. The site happily accepts them as input, i.e.
www.aerogamers.com/controller/action, but when it redirects, they come
out like www.aerogamers.com/cake_install/controller/action.
Problem two is that cake doesn't seem to acknowledge my
AppController in app/Controllers/. For instance, my UsersController
just can't seem to inherit from it.

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