You shouldn't move it. The htaccess forwards each request at
http://#####.co.nz/sitemap_index.xml.gz to
http://#####.co.nz/vbseo_sitemap/dat...p_index.xml.gz (but there should not actually be a file at
http://#####.co.nz/sitemap_index.xml.gz, it just forwards). In fact, you should not be able to even access
http://#####.co.nz/vbseo_sitemap/dat...p_index.xml.gz directly if you put the other htaccess there. It should only be accessible at
http://#####.co.nz/sitemap_index.xml.gz. Are you using Apache?