Trouble Upgrading from version 3.0.4 to 3.0.9

I am trying to upgrade from 3.0.4 to 3.0.9.
I followed the simple instructions for upgrading (shown below).

This is the site:
http://whitmerdecks.com/gallery3/index.php/

When I try to execute step 10 I get the following error:
-------------------------------------------
Internal Server Error

The server encountered an internal error or misconfiguration and was unable to complete your request.

Please contact the server administrator, and inform them of the time the error occurred, and anything you might have done that may have caused the error.

More information about this error may be available in the server error log.
-------------------------------------------

Any ideas on where the log is or what I did incorrectly?
Thanks

Cliff

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To upgrade your installation to the latest Gallery 3 version (e.g. Gallery 3 version 3.0 to 3.1) follow these steps:
Download the latest version of Gallery 3.
Extract the archive and upload all files and folders to a new folder (e.g. "gallery3_new" on your web server (usually via FTP).
Browse to your current installation and go to "Login -> Admin -> Maintenance"
On the maintenance page click on "Turn on maintenance mode" to prevent user from accessing the gallery while you are upgrading. (this option does not exist in at least 3.0.0RC1, but is present in some later releases)
Move the var folder from your old folder to the new one. Permissions and ownership on this directory must be maintained. The webserver (Apache/PHP) must be able to write to it after you move it. Also check that hidden files (for example .album.jpg) files are moved as well.
Copy any custom or downloaded Themes from your old folder to the new one.
Copy any downloaded Modules from your old folder to the new one. Do not copy the gallery folder from the old to the new.
Rename the old folder (e.g. from "gallery3" to "gallery3_old")
Rename the new folder to the name you had for your old folder (e.g. from "gallery3_new" to "gallery3")
Browse to your Gallery 3 installation and add "/upgrader" at the end of the URL (e.g. http://www.example.com/gallery3/index.php/upgrader)
Follow the instructions on the upgrader page.
Browse to your current installation and go to "Login -> Admin -> Maintenance"
On the maintenance page click on "Turn off maintenance mode" to allow access to your installation again.
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I am still having trouble finding that error log.
I will keep looking.

I do have a customized .htaccess file.
I had added a section at the top of the 3.0.4 version.
Cannot remember why I did.

Here is the .htaccess file:

# Inserted by Cliff to allow Gallery Remote to work as per http://codex.galleryproject.org/Gallery3:Modules:remote
<IfModule mod_rewrite.c>
Options +FollowSymLinks
RewriteEngine On
RewriteBase /gallery/
ErrorDocument 404 default
RewriteRule ^main.php(.*)$ / [QSA,L,R=404]
RewriteRule ^gallery_remote2.php(.*)$ index.php?kohana_uri=/gallery_remote$1 [QSA,PT,L]
</IfModule>

# Set some reasonable defaults for PHP. Most of these cannot be set
# inside the script itself. For hosts that don't have .htaccess
# support but do support per-dir php.ini files, these settings are
# mirrored in php.ini
#
<IfModule mod_php5.c>
php_flag short_open_tag On
php_flag magic_quotes_gpc Off
php_flag magic_quotes_sybase Off
php_flag magic_quotes_runtime Off
php_flag register_globals Off
php_flag session.auto_start Off
php_flag suhosin.session.encrypt Off
php_value upload_max_filesize 20M
php_value post_max_size 100M
</IfModule>

# Try to disable the parts of mod_security that interfere with the Flash uploader
#
<IfModule mod_security.c>
SecFilterEngine Off
SecFilterScanPOST Off
</IfModule>

# Increase security by uncommenting this block. It keeps browsers
# from seeing support files that they shouldn't have access to. We
# comment this out because Apache2 requires some minor configuration
# in order for you to use it. You must specify "AllowOverride Limit"
# in your Apache2 config file before you uncomment this block or
# you'll get an "Internal Server Error".
#
# <FilesMatch "(\.(class|fla|gitignore|inc|ini|sql|txt)|(README|LICENSE|.build_number))$">
# Order deny,allow
# Deny from all
# </FilesMatch>
# <FilesMatch "robots.txt">
# Order allow,deny
# Allow from all
# </FilesMatch>

# Improve performance by uncommenting this block. It tells the
# browser that your images don't change very often so it won't keep
# asking for them. If you get an error after uncommenting this, make
# sure you specify "AuthConfig Indexes" in your Apache config file.
#
# <IfModule mod_expires.c>
# ExpiresActive On
# # Cache all files for a month after access (A).
# ExpiresDefault A2678400
# # Do not cache dynamically generated pages.
# ExpiresByType text/html A1
# </IfModule>

# You can use the mod_rewrite Apache module to get rid of the
# "index.php" from your Gallery 3 urls. Uncomment the block below
# inside the <IfModule> ... </IfModule> lines and then edit the
# RewriteBase line to match your Gallery 3 URL.
#
# Here are some RewriteBase values:
# Gallery 3 URL RewriteBase line
# ============= ====================
# http://example.com/gallery3 RewriteBase /gallery3
# http://example.com/~bob/photos RewriteBase /~bob/photos
# http://gallery3.example.com/ RewriteBase /
#
# Then just use your Gallery 3 without the index.php in the url.
#
# NOTE: future upgrades of Gallery 3 will overwrite this file! If you
# want these changes to be persistent, talk to your system admin about
# putting this block into your Apache config files.
#
# <IfModule mod_rewrite.c>
# Options +FollowSymLinks
# RewriteEngine On
# RewriteBase /
# RewriteCond %{REQUEST_FILENAME} !-f
# RewriteCond %{REQUEST_FILENAME} !-d
# RewriteRule ^(.*)$ index.php?kohana_uri=$1 [QSA,PT,L]
# RewriteRule ^$ index.php?kohana_uri=$1 [QSA,PT,L]
# RewriteRule ^index.php/(.*) $1 [QSA,R,L]
# </IfModule>