Elgg and mod_rewrite on CentOS 6 not working

The install fails at the "Web Server" part when it checks for .htaccess. Installer thinks that mod_rewrite isn't enabled when it actually is. You can easily reproduce this problem by trying to install elgg in a CentOS 6.2 LAMP machine. I've verified with phpinfo, as well as a mod_rewrite test that the apache server does have mod_rewrite installed and enabled. I've tried "RewriteEngine On" in various places... I've tried "AllowOverride All" in various places... nothing works for the installer to continue.

Any help would be appreciated.

Server details:
CentOS 6.2 x64 (VMware VM w/ 2CPU and 8GB ram)
Kernel: 2.6.32-220.7.1.el6.x86_64
PHP Version:  5.3.3 (Zend Engine Version: 2.3.0)
Apache Version:  2.2 (httpd-2.2.15-15.el6.centos.1.x86_64)