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It could be that your home page will continue to rank for that keyword (since it is very low competition) if the keyword remains relatively prominent on the page and the meta data. If this is not the case or not what you want, then yes I would create a new page with appropriate content and link to it from the home page.

great thanks ill give that a go

thats great help thanks Donna

A bit late but just for the record. You have a rewrite rule in place not a redirect.  You need something like: RewriteRule ^(.*)$  http://www.yoursite.com/$1  [L,R=301]