g1smd - 7:39 pm on Apr 4, 2012 (gmt 0)
In the RegEx pattern in the rule in the .htaccess file in the products folder, don't mention the name of the folder the file is in as explained above.
Additionally, make sure the rule target contains the full protocol and domain name.
Escape the literal period in index\.php
Unless you want the original query string to be re-appended to the new URL add a question mark to the end of the target URL.