I have had the opportunity to setup proper permalink redirections in Wordpress simply by entering /%category%/%postname%/ and taking advantage of the below proven snippet as my .htacccess file. - Working great!

<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /subfolder/
RewriteRule ^index\.php$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /subfolder/index.php [L]
</IfModule>

However, if attempting to access links to aged posts, for example "December 2010" (proven within the sidebar), I recieve for this page: http://localhost/subfolder/2010/10/

How do i rather rewrite all date-based demands towards the following page? http://localhost/subfolder/archive/2010/10/

Thanks

ad this just before your last rule:

RewriteCond % !subfolder/d/d

adding a brand new rule e.g.

RewriteRule subfolder/(d)/d/) archive/$1 [L]