Understand how htaccess works

I need to understand how to manipulate the htaccess file for a website.

Hi experts,

we are currently hosting a site at one location for quite some time. we redesigned our site and going to a different hosting company. I know the htaccess file is a key element to keep are rating for SEO.
my questions are the following:
1- is the htaccess file created has a limitation in size?
2-is the htaccess file needs to reside on the old hosting company or the new one?
3- I also have quite a few domain name pointing to my old hosting company , how do I handle the htaccess file for each one of those domain?

I am sorry I have tried to educate myself on how Htaccess file works but I didn't find a good site that explains how this whole htaccess file works.
any help will appreciate.
Thanks
David
tavernyAsked:
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Dave BaldwinFixer of ProblemsCommented:
.htaccess is an extension of the Apache configuration.  It contains rules that could be included in the main Apache configuration file which means there are 1000's of possibilities.  

The rules in .htaccess apply only to the current directory tree so it only applies to the site that it is in.  It has no effect on any other site or remote site.  The biggest problem with .htaccess is that it must be read and applied every time a file in that directory tree is accessed.  You don't want it to be larger than necessary.
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tavernyAuthor Commented:
Thanks Dave for clarifying some of it. would you know how to answer the rest of my question?
Thanks
David
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Dave BaldwinFixer of ProblemsCommented:
3- I also have quite a few domain name pointing to my old hosting company , how do I handle the htaccess file for each one of those domain?
That is a DNS (nameserver) problem, not an .htaccess problem.
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tavernyAuthor Commented:
what about #2?
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Dave BaldwinFixer of ProblemsCommented:
As I said above...

The rules in .htaccess apply only to the current directory tree so it only applies to the site that it is in.  It has no effect on any other site or remote site.
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tavernyAuthor Commented:
for those who are looking for the same information as I had:
1- the file limitation is recommended to be less than 20MB
2- the htaccess file needs to be on the hosting company that you will be pointing your domain name to (the new hosting)
3- the htaccess file will be red for every domain pointing to the new hosting company.
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