Problems with permissions on localhost - apache

Question

I'm having problems with permissions on localhost. I'm migrating a Magento site.
When trying to go to my site with when I have .htaccess in root I get Internal Server Error.
When I rename .htaccess to .htaccess.dis I end up at the install page (index.php/install/).
So my thinking is that .htaccess is doing something funky...
I'm using MAMP PRO for localhost.
ps. When using normal MAMP the .htaccess doesn't give Internal Server Error.
##### Block unwanted Bots that clog the server #####
RewriteCond %{HTTP_USER_AGENT} MJ12bot
RewriteRule .* - [F]
RewriteCond %{HTTP_USER_AGENT} 80legs [NC]
RewriteRule ^ - [F]
##### Add support for SVG Graphics and CSS3 Pie #####
AddType image/svg+xml svg svgz
AddEncoding gzip svgz
AddType text/x-component .htc
DirectoryIndex index.php
##### Domain-specific PHP Settings #####
<IfModule mod_php5.c>
php_value memory_limit 6768M
php_value max_execution_time 18000
php_flag magic_quotes_gpc off
php_flag session.auto_start off
php_flag suhosin.session.cryptua off
php_flag zend.ze1_compatibility_mode Off
</IfModule>
##### mod_deflate compresses your output to lower the file size being sent to the client #####
<IfModule mod_deflate.c>
AddOutputFilterByType DEFLATE text/html text/plain text/xml text/css text/javascript
BrowserMatch ^Mozilla/4 gzip-only-text/html
BrowserMatch ^Mozilla/4\.0[678] no-gzip
BrowserMatch \bMSIE !no-gzip !gzip-only-text/html
SetEnvIfNoCase Request_URI \.(?:gif|jpe?g|png)$ no-gzip dont-vary
Header append Vary User-Agent env=!dont-vary
php_flag zlib.output_compression on
</IfModule>
<Files *.php>
SetOutputFilter DEFLATE
</Files>
<IfModule mod_ssl.c>
SSLOptions StdEnvVars
</IfModule>
##### Header Directives #####
<ifModule mod_headers.c>
Header unset ETag
Header unset Last-Modified
</ifModule>
##### disable POST processing to not break multiple image upload #####
<IfModule mod_security.c>
SecFilterEngine Off
SecFilterScanPOST Off
</IfModule>
##### Enable apache served files compression #####
<IfModule mod_deflate.c>
AddOutputFilterByType DEFLATE text/plain
AddOutputFilterByType DEFLATE text/html
AddOutputFilterByType DEFLATE text/xml
AddOutputFilterByType DEFLATE text/css
AddOutputFilterByType DEFLATE application/xml
AddOutputFilterByType DEFLATE application/xhtml+xml
AddOutputFilterByType DEFLATE application/rss+xml
AddOutputFilterByType DEFLATE application/javascript
AddOutputFilterByType DEFLATE application/x-javascript
BrowserMatch ^Mozilla/4 gzip-only-text/html
BrowserMatch ^Mozilla/4\.0[678] no-gzip
BrowserMatch \bMSIE !no-gzip !gzip-only-text/html
SetEnvIfNoCase Request_URI \.(?:gif|jpe?g|png)$ no-gzip dont-vary
Header append Vary User-Agent env=!dont-vary
</IfModule>
##### Mod gzip and caching for improved site speed #####
<ifModule mod_gzip.c>
mod_gzip_on Yes
mod_gzip_dechunk Yes
mod_gzip_item_include file \.(html?|txt|css|js|php|pl)$
mod_gzip_item_include handler ^cgi-script$
mod_gzip_item_include mime ^text/.*
mod_gzip_item_include mime ^application/x-javascript.*
mod_gzip_item_exclude mime ^image/.*
mod_gzip_item_exclude rspheader ^Content-Encoding:.*gzip.*
</ifModule>
##### Default expires headers for all file types #####
##### Not recommended for development environment #####
<ifModule mod_expires.c>
ExpiresActive On
ExpiresDefault "access plus 1 seconds"
ExpiresByType text/html "access plus 1 seconds"
ExpiresByType image/gif "access plus 2592000 seconds"
ExpiresByType image/jpeg "access plus 2592000 seconds"
ExpiresByType image/png "access plus 2592000 seconds"
ExpiresByType text/css "access plus 604800 seconds"
ExpiresByType text/javascript "access plus 216000 seconds"
ExpiresByType application/x-javascript "access plus 216000 seconds"
</ifModule>
##### Mime Type Caching #####
<IfModule mod_mime.c>
##### AUDIO #####
AddType audio/mp4 m4a f4a f4b
AddType audio/ogg oga ogg
##### JAVASCRIPT #####
# Normalize to standard type (it's sniffed in IE anyways):
# http://tools.ietf.org/html/rfc4329#section-7.2
AddType application/javascript js jsonp
AddType application/json json
##### VIDEO #####
AddType video/mp4 mp4 m4v f4v f4p
AddType video/ogg ogv
AddType video/webm webm
AddType video/x-flv flv
##### WEB FONTS #####
AddType application/font-woff woff
AddType application/vnd.ms-fontobject eot
##### Browsers usually ignore the font MIME types #####
##### and sniff the content, however, Chrome shows #####
##### a warning if other MIME types are used for #####
##### the following fonts. #####
AddType application/x-font-ttf ttc ttf
AddType font/opentype otf
##### OTHER #####
AddType application/octet-stream safariextz
AddType application/x-chrome-extension crx
AddType application/x-opera-extension oex
AddType application/x-shockwave-flash swf
AddType application/x-web-app-manifest+json webapp
AddType application/x-xpinstall xpi
AddType application/xml atom rdf rss xml
AddType image/webp webp
AddType image/x-icon ico
AddType text/cache-manifest appcache manifest
AddType text/vtt vtt
AddType text/x-component htc
AddType text/x-vcard vcf
</IfModule>
<IfModule mod_mime.c>
AddCharset utf-8 .atom .css .js .json .rss .vtt .webapp .xml
</IfModule>
##### Disable ETags http://developer.yahoo.com/performance/rules.html#etags #####
FileETag None
##### Prevent character encoding issues from server overrides #####
AddDefaultCharset Off
#AddDefaultCharset UTF-8
############################################
## default index file
DirectoryIndex index.php
<IfModule mod_rewrite.c>
############################################
## enable rewrites
Options +FollowSymLinks
RewriteEngine on
############################################
## you can put here your magento root folder
## path relative to web root
# RewriteBase /sv/
############################################
## uncomment next line to enable light API calls processing
# RewriteRule ^api/([a-z][0-9a-z_]+)/?$ api.php?type=$1 [QSA,L]
############################################
## rewrite API2 calls to api.php (by now it is REST only)
RewriteRule ^api/rest api.php?type=rest [QSA,L]
############################################
## workaround for HTTP authorization
## in CGI environment
RewriteRule .* - [E=HTTP_AUTHORIZATION:%{HTTP:Authorization}]
############################################
## TRACE and TRACK HTTP methods disabled to prevent XSS attacks
RewriteCond %{REQUEST_METHOD} ^TRAC[EK]
RewriteRule .* - [L,R=405]
## always send 404 on missing files in these folders
RewriteCond %{REQUEST_URI} !^/(media|skin|js)/
############################################
## never rewrite for existing files, directories and links
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteCond %{REQUEST_FILENAME} !-l
############################################
## rewrite everything else to index.php
RewriteRule .* index.php [L]
</IfModule>
###########################################
## Deny access to release notes to prevent disclosure of the installed Magento version
<Files RELEASE_NOTES.txt>
order allow,deny
Allow from all
</Files>
# ALLOW USER BY IP