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I just created a test user and posted an ad without your site without any problems. So just need to know if the problem really solved?

can u please provide a test account ? just want to see whats the error code ?

try to chmod your .htaccess file to 777 and resave your permalinks again.
(it's the htaccess file in the root of your wordpress installation)

ya... just resave your permalink with custom - %postname%

try to save you permalinks.