WordPress MU

I'm looking to use WordPress for several different blogs on a site. Each blog will get a different subdomain. Each blog may or may not have the same set of contributors or users. It's really just for a company's use, not open for public registration. There will only be about 3-4 different blogs. While I could simply maintain 3 different non-MU WP installs, one thing I do want is for all of them to share the same user database so that users don't have several different accounts to manage.

So, with MU, can I setup different blogs to be different subdomains? I use Dreamhost, so my subdomains can be a redirect or an actual folder on the webserver.

Anyone have any suggestions? I'm open!

I think WPMU is a way for you here. Disable signups of new blogs and you're ready to go :)

don't forget there are a couple of plugins which allow you to run several wp installs from the same codebase. Might be an easier solution than wpmu.