Magento causes internal server error 500

In magento 1.7 this can be caused by disabled track and trace in the htacces file

## TRACE and TRACK HTTP methods disabled to prevent XSS attacks

RewriteCond %{REQUEST_METHOD} ^TRAC[EK]
RewriteRule .* – [L,R=405]

Comment out the last two lines

## TRACE and TRACK HTTP methods disabled to prevent XSS attacks

#RewriteCond %{REQUEST_METHOD} ^TRAC[EK]
#RewriteRule .* – [L,R=405]

Also in other cases you have to solve this by adding

php_flag apc.cache_by_default Off

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