I know this is an old topic, but just wanted to provide an update. I just 
set up the latest CakePHP in GoDaddy and wanted to post my experience.

First, they are using PHP5 as the default now.

Second, you still get 500 errors on any path. I fixed it by adding the 
following at the start of the rewrite code in the .htaccess file under the 
webroot directory:
RewriteBase /

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