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- a page is requested by a visitor.
- the webserver checks the directory for an htaccess file.
- if found, processes directives in the file.
- acts on directives.
There isn't anything I can really think of you may be referring to that would increase your rankings. There are some server directives you can pass that may help, but that is just configuration (such as enabling server side includes for non .shtml files).
If I were you, I'd contact your website host and make sure there isn't something odd about their server set up... you're not hosted on NT are you? I've heard htaccess can't help with 404s on an NT server.