WordPress – Subdirectory – htaccess

I have WordPress installed in a subdirectory:

/public_html/blog/

I want to be able to access the blog like this:

http://example.com/blog

and posts like this:

http://example.com/blog/category/postname

In general settings I have the “WordPress Address (URL)” set to:

http://example.com/blog

Permalinks is set like:

/blog/%category%/%postname%

In the subdirectory (/public_html/blog/) I have an .htaccess like:

<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /blog/
RewriteRule ^index.php$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /blog/index.php [L]
</IfModule>

Everything works EXCEPT for being able to access the blog Home page at:
http://www.example.com/blog
Doing that sends me to the “WordPress 404 page not found” page.

I’d be very grateful for a solution!

EDIT

I’m an idiot – I missed something vital. I needed to also change the Site URL in WordPress > General to:

http://example.com/blog

Doing that and then removing /blog/ from the permalink structure made everything work. I probably wouldn’t have spotted this if @IanB hadn’t picked up the /blog/ bit not being necessary. Thanks…