Hi
I activated the URL changes after changing my htacess.
But does our SEF URLs work without sh404SEF? I mean with just Joomla SEF? currently you are not using .htaccess with Joomla. Your URLs are using /index.php/ in them. You should make the .htaccess file work first with Joomla URLs. Then you can install sh404SEF and it will work the same.
I had to restore my site before activating sh404.
I do not understand this. You "restored" your site before installing sh404SEF? how is this related? or do you mean that you restored the site from backup
after installing sh404SEF because it was not working?
I have looked at your screenshot but it only shows that sh404SEF is disabled so I'm not sure why you are showing me this screenhost.
It seems to me your .htaccess is simply not valid.
If you fix it without sh404SEF then adding sh404SEF will be no problem.
Best regards