My b2evolution Version: 3.3.3

I'm new to b2evo, but I have been researching this topic for a few days. I want to keep my blog's base URL as the absolute URL (with no index.php trailer), but this breaks the permalinks (they work if I keep it as "default blog in index.php", but I don't want that).

I've removed the comments from the last 3 lines of htaccess, but no change. Maybe a problem with bluehost not having mod_rewrite installed, or htaccess is not allowed? I don't see any option to enable these in the CPanel though. I'm surprised that it doesn't work by default, seeing as bluehost came highly recommended for b2evo. Anyone had this issue with this host and know a solution?

Thanks