If you want to argue semantics, I'm fully aware that "a permalink" is any permanent link to a page/post. In a WordPress context when you say "I am using permalinks" or "I turned permalinks on" it implies "pretty" permalinks as default "ugly" permalinks don't require any action to turn on or use. If you notice Rev. Voodoo's previous statement...
You don't have permalinks turned on...
If you're original issue is resolved, please mark the topic as such.