How to get Drupal's clean URLs working on OS X
To get Drupal's clean URLs to work on OS X, it's not enough to just turn on the AllowOverride All directive in /etc/httpd/httpd.conf, you must also turn it on for your user account by editing your own username.conf file.
Edit the file in pico (replace username with your own name):
sudo pico /etc/httpd/users/username.conf
And change it to:
<Directory "/Users/username/Sites/">
Options Indexes FollowSymLinks
AllowOverride All
Order allow,deny
Allow from all
</Directory>
Restart apache and Drupal's clean URL's should be working.