[eluser]CroNiX[/eluser]
Your error messages are complaining about an <IfModule>, but the htaccess you posted doesn't contain that so I think the problem is elsewhere...perhaps in your main apache.conf?
I would also urge you to learn how to create virtual servers with apache, so each one of your projects would have it's own unique domain, like 'project1.dev', 'project2.dev' instead of '127.0.0.1/some_dir/project1/' and not have to mess with a lot of this stuff. It would mimic your actual server more closely and alleviate some issues which you have to work around between development/production servers.
Those htaccess rules you have regarding the /application and /system dir are way outdated and unnecessary. You should only really need:
Code:
RewriteEngine ON
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule ^(.*)$ index.php?/$1 [L]
The /application and /system dir have contained their own htaccess file by default for years now which deny access directly from the URL.
