Ok, i believe i have found the solution. Before i get to the answer i feel it is important to state that this magento installation was transferred from a professional webhotell provider to a private server that was set up by a inexperienced user (me). Ok on to the solution.
Solution: I made a minor change to the code in the httpd.conf file
# Further relax access to the default document root:
# Possible values for the Options directive are "None", "All",
# or any combination of:
# Indexes Includes FollowSymLinks SymLinksifOwnerMatch ExecCGI MultiViews
# Note that "MultiViews" must be named *explicitly* --- "Options All"
# doesn't give it to you.
# The Options directive is both complicated and important. Please see
# for more information.
Options Indexes FollowSymLinks
# AllowOverride controls what directives may be placed in .htaccess files.
# It can be "All", "None", or any combination of the keywords:
# Options FileInfo AuthConfig Limit
# Controls who can get stuff from this server.
Require all granted
The line of code that was changed was..
Admittedly not i understand this fully but it appears to have made all the difference and i hope this can help others in a similar situation.