By default, OpenCart uses URL's like http://localhost/OpenCart/index.php?route=product/category&path=59
However, there's an option of "SEO-Friendly URL's" in the admin panel, which changes it to the content of the "SEO-Friendly URL" field in the category entry, i.e. http://localhost/OpenCart/Some-Product-Category
This requires changing htaccess.txt file in the root folder of OpenCart to .htaccess, which I did.
Also, made sure RewriteEngine On is included in .htaccess.
Also, made sure mod_rewrite is enabled in in XAMPP->apache->httpd-conf file.
However, when I click on any category link, it throws me right back to the localhost/xampp/ page.
What am I missing?