"Test for .htaccess rewrites failed. This usually means you do not have AllowOverride set up for Sugar directory." error during installation

Hi,

I am setting up a new environment on a fresh Ubuntu install.
I copied the installation files for Sugar 7.2 Enterprise and I started the installation process.

During the check I get this message

Test for .htaccess rewrites failed. This usually means you do not have AllowOverride set up for Sugar directory.

I ensured that the mod_rewrite was active, I added the lines 


<Directory /var/www/>

        AllowOverride All

</Directory>

<Directory /var/www/sugar/>

        AllowOverride All

</Directory>



to the /etc/apache2/apache2.conf



and the 

<Directory /var/www/>

                Options Indexes FollowSymLinks MultiViews

                AllowOverride All

                Order allow,deny

                allow from all

</Directory>

<Directory /var/www/sugar/>

                Options Indexes FollowSymLinks MultiViews

                AllowOverride All

                Order allow,deny

                allow from all

</Directory>



To /etc/apache2/sites-available/default



But I still get the error message. I have been through several installations, but I've never seen anything like this before.

What is there left to check?