We recently had problems with Server Rewrite rules not working when uploading a new site. The rules had worked fine locally, on dev, but when we uploaded it wasn't having any of it. The rules were in the httpd.ini file which sat in the root of the site- the syntax of the rules was identical to other file's we had used on other sites. After much head scratching Paul suggested it might be the encoding of the file- we opened it in Notepad and went to save as and changed the file from the default "UTF" to "ANSI" encoding and everything started working!
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