For those of you that might not know (and I was one of you about a month ago), Zeus is a Web server package that’s used instead of apache by some Web hosts. If you’re planning to use WordPress, and you have a choice between apache and Zeus, I would definitely recommend choosing apache. However, sometimes you don’t have a choice in the matter; and you have to do what you can to make things work.
WordPress will work out of the box with Zeus, but a lot of things won’t behave the way you might expect. One of those things is the permalink structure.
Instead of getting nice, clean URLs like “http://example.com/blog/2012/01/my-first-blog-post/”, you get “index.php” shoved in there (like “http://example.com/index.php/blog/2012/01/my-first-blog-post/”). You can correct this issue, but it’s not quite as simple as updating an .htaccess file (in fact, without some jiggery-pokery by your Web host, Zeus doesn’t support .htaccess at all). Instead, you have to apply a rewrite script to your server configuration.
After quite a bit of searching and trial & error, I finally found a working rewrite script configuration for WordPress. A hosting company called ZipHosting posted the scripts below in their knowledgebase. The first script is set up for you to use if WordPress is hosted in a subdirectory, and the second is for use with WordPress in the root directory.