wordpress / xampp - links don't work for default theme

I've just installed Xampp and Wordpress and all looks ok when I bring up the 开发者_运维知识库default blog, but if I click on any of the post or category links, I get an Error 404: Oject not found, and sure enough if I look at the source, the link destination doesn't exist? Is this something to do with permalinks? Do I need to change owt in the settings?

Any help gratefully accepted.

PS: Apache rewrite_module is enabled in httpd.conf