[wp-hackers] Custom Taxonomies Permalink / Url not working

[Jason]

Hey All,

I've just setup a fresh install of WP and added a custom taxonomy (with the
functions.php) like so:

*function create_my_taxonomies() {
    register_taxonomy( 'people', 'post', array( 'hierarchical' => false,
'label' =>  __('People', 'series'), 'query_var' => 'people', 'rewrite' =>
true ) );
}*

I've also created a *taxonomy.php* template file and placed it in my theme
directory and setup permalinks as */%year%/%monthnum%/%day%/%postname%/*

When try to navigate to
http://vermilion.mydemo.com.au/people/test-tax/gives a pafe not found
however when I navigate to
http://vermilion.mydemo.com.au/?people=text-tax it works.

I've tried flushing the rewrite rules and changing to/from the default
structure and still nothing.

Anybody have any suggestions?

Thanks in advance.

Jason