BuddyPress.org

Yeah I adjusted the permalinks for the blog other wise it nothing worked. It was on custom structure (/blog/%year%/%monthnum%/%day%/%postname%/) when I changed them to the default.

Yes the functions.php file is located at wp-content/themes/bphome/.

htaccess file:

# Use PHP5 as default

AddHandler application/x-httpd-php5 .php