The first thing I do with these problems is obliterate the cache in all three browsers. Maybe I need a 4th browser. :) (good thing for password vaults.) Anyway:
With friendly urls ON, the links look like this, but I get the 404 Page not Found:
http://thirtybees.local/holidays-and-events/puppies-and-dogs-festive-christmas-hair-bow
With friendly urls OFF, the links look like this, but the pages are correct:
http://thirtybees.local/index.php?id_product=502&controller=product