One of the biggest problem with GoDaddy is that Initial .htaccess creation is cached for an hour. On the other hand, once the server recogonizes your file any change you make will take place immediately.

There is a good thread in the siliana forums that discusses this topic with working .htaccess files.

Also this is good info on the Joomla forums about GoDaddy and .htaccess files / Installation, etc.