For some reason in CI 2.0 the URLS do not work.
http://localhost/myapp/ - will open the default controller (bc it finds index.php)
http://localhost/myapp/index.php/home/ - will open the default controller
http://localhost/myapp/home/ - will show path not found
I am not sure if this is a problem with 2.0 or a specific problem with my configuration.
I am running Apache 2 on Mac OS X Snow Leopard.
I looked for .htaccess solution, but couldn’t find any for CI 2.0.
The real problem was that in Snow Leopard the actual Directory configuration usually located in /private/etc/apache2/httpd.conf is now located in /private/etc/apache2/users/[USERNAME].conf By default FollowSymlinks and AllowOverride are disabled there so you have to go and fix it manually, even if it is enabled in the regular httpd.conf
Tricky. Thanks everybody. Otherwise all you need is the regular .htaccess as people already pointed out.