.htaccess will only work on Apache servers running on Linux or other Unix based operating systems. I am running Apache on Windows NT but haven't yet figured out how to get it to recognise the .htaccess file but the files do work once uploaded to my web host.
Most people work on their own Windows based computer to create the files to upload to their web server (which is usually running Linux) and therefore need to get the .htaccess file created with the correct name ready to upload it.