No, magic doesn't inhibit technology, this is proven by a very simple 
thing.  If there is a force (IE fire) that will act a certain way every 
time you do something just so (drop gasoline one it)... then it is a new 
invention (naptha).  So therefore... Magic does not inhibit 
technology... it IS technology.  The onlly way that this would not work, 
is if almost everyone didn't have the potential to use magic.  If that 
was true, then they would be rarities, like great artists.  They would 
be counted on heavilly for certain things where you could manage to pay 
an arm leg and an extra pound of flesh, but so rare that they aren't 
really trusted by most people to do something (IE moses and the red 
sea).  But for the most part, technology would be the norm, and magic 
would be like a king wasting half of his treasury making a mage school.
	-X