[TYPO3-english] RealURL encodes but doesn't decode ('"section/page/" could not be found, closest page matching is')

[Bob]

I've just added RealURL to a test site. It's encoding the links 
correctly - i.e. all my links now go to 
http://www.mydomainname.com/section/page/ - but none of these links 
actually work! Instead I get:

> TYPO3
> Error!
> Reason: "section/page/" could not be found, closest page matching is 

I'm using RealURL 1.3.4 and Typo3 4.1.6 under Apache.

My .htaccess is now as follows:

RewriteEngine On
RewriteRule ^typo3$ - [L]
RewriteRule ^typo3/.*$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteCond %{REQUEST_FILENAME} !-l
RewriteRule .* index.php

And my site template starts with:

config.simulateStaticDocuments = 0
config.tx_realurl_enable = 1
config.baseURL = http://www.mydomainname.com/

I haven't edited realurl/ext_localconf.php (or anything else).

Can anyone help?

(I'm not running TYPO3 in a subdirectory.)

Thanks,

Bob