Just to close the loop, in case someone experiences similar problems, I called my host Support, and all they did was to rename the .htaccess file to .htaccess.bak, and that was it! So I guess I didn't need the file after all.
Installing and upgrading help
Installation error - Invalid command 'php_flag'
Hierdie bespreking is gesluit, dus kan jy nie meer daarop antwoord nie.