Let's say you have a widget sales site. Looking at it from the web and from FTP or Telnet, we see two different views, but they are the same:
Web space: [yourdomain.com...]
File space: users/vineld/public_html/production/widgets/cart.php?pid=001
In this case, the URL is straightforward, but your mod_rewrite is used to do two things: First, to serve all files from a subdirectory called "production," and second to "convert" php files to html pages so that users and SE spiders see "static" pages, and not the script.
The "Web space" and "file space" are mapped to each other, but differ in naming methods. The server's user subdirectory, your username, and directory "public_html" are not visible to HTTP users on the Web, and HTTP users also don't see that you really have two main subdirectories - One for production and one for testing purposes. The only overlap is in the "widgets" directory. But yet the two spaces mean the same thing -- they refer to the same resource, a page about widget product number 001.
mod_rewrite lives at a place in the server where it is part of both the Web space world and the server filesystem world. A common cause of problems and confusion is mixing up the ways the two worlds refer to the same file. So, my question was whether you recognized the subdirectory path, and whether you expected the server to try to access that subdirectory path. If not, then you will probably need to use mod_rewrite's RewriteBase directive to tell mod_rewrite where to start in your filesystem to do the redirects correctly.