I also placed Kickstart and the language file into this directory.
After install i get the Page 500 error and simply removed the newly created .htaccess.
Now I can access the page but the frontend has some problems.
Missing pictures and wrong fonts.
When going into the content editor and trying to change the "missing" pictures, The picture is highlighted in the selector-box and after pressing UPDATE, the picture is shown. (so the editor almost knows what i'm looking for but the file was not "selected")
Since I'm also missing background pictures and fonts, I guess this is due to som CSS errors - I went into the template.css and changed the background color from WHITE to BLACK - the result was as expected, so I am dealing with the correct file. But some of the background pictures are not being referred to in a correct way should be ../images but was only /images.
After changing this I get one small correct result but a lot of other images are still not shown.
Could there be a generel "path" interception problem?
Kind Regards
Werner