I was just wondering how to enable Pretty URLS in 1.10.3. I did not see any option during the install, and have tried modyfing the htaccess and config files, however to no success.

I have tried following this procedure, however it did not work for me. It did however change the url of the links to the correct pretty urls, however when clicked it said the page could not be found.

Then your htaccess is not correct.
Is your CMSms installation in a subfolder perhaps?

_________________
Get nice guestbook messages from your site visitors with the brand new Gbook module.
Integrate Piwik Web Analytics in your site admin with the Piwik module.
Extend your global site settings with the Custom Global Settings module.
The Fourth Dutch CMS Made Simple Workshop on April 9 2011 was great fun! Read all about it here
Announcement: The Fifth Dutch CMS Made Simple Workshop coming up?

Nope, it is in the public www folder.

Did you copy the htaccess.txt file from the doc folder to the root folder and renamed it to .htaccess ?

_________________
Get nice guestbook messages from your site visitors with the brand new Gbook module.
Integrate Piwik Web Analytics in your site admin with the Piwik module.
Extend your global site settings with the Custom Global Settings module.
The Fourth Dutch CMS Made Simple Workshop on April 9 2011 was great fun! Read all about it here
Announcement: The Fifth Dutch CMS Made Simple Workshop coming up?

Thanks for that last piece of advice, seems to have fixed the problem. I have not created a web.config file, however it seems to be working fine. Do you recommend on still creating one?