I checked and I think my server (Hostgator) fully support all the system requirements, even has more features than the recommended ones, that's why I chosen them... But I can't find nothing on the error_log folder :/
Yes, it will affect the work of your website, as .htaccess file contains all the rules, regulations and processes of your website working procedures. Which means that .htaccess file contradicts the mod_rewrite settings on your hosting server, which is not good and means that your server is not properly configured for the software to run and be installed. Please, read this post: http://www.oxwall.org/forum/topic/4661
Keep us updated.