Still having problems with this.
i made a new wordpress site to try get it going, but same issues.
to note, im using wamp and my rewrite module is on and working.
1. changed permalinks to day and name.
2. i install buddy press with default settings
3. installation run to the end with no problem
4. view the page and all the pages break
-changing the permalinks to default or using custom to add index.php fixes those pages
but buddy presses features wont work then.
the normal navigation menu works (default or custom permalinks)
everything from the drop down menu does not.
looked at the codex for help on permalinks but im just not understanding it or just cannot get it working.