I had to give permission to the app/storage folder and it worked. I did not see this documented on the website or may be I missed it.

I normally encounter this, it's a permissions error. Set permissions of all files and folders in app/storage. So, go to your project root from Terminal, and enter the following:

First run:

find app/storage -type d -exec chmod 777 {} \;

Then run:

find app/storage -type f -exec chmod 777 {} \;

It's not .htaccess. I hope this helps :)

ritushrestha said:

I had to give permission to the app/storage folder and it worked. I did not see this documented on the website or may be I missed it.

"Permissions": http://laravel.com/docs/installation#configuration

Mcrypt installed? I've had issues with certain things not installed. Most likely permission though.

Yes it was a permission issue and is now fixed. I missed this in the documentation. Thank you guys for your help.