2012-11-01 8:44 am EST
Thank you for your question regarding the installation of wordpress.
This error is because Wordpress wants to replace the existing .htaccess file.
If you don't have anything custom coded in the existing .htaccess, it is okay to delete or overwrite it.
You can also rename it, something like: .htaccess.old
That way it is still accessible at a later time.
If you have any further questions, feel free to post them below.
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