Just to report that thanks to my mate Kevin we sussed out the problem with hosting WPMU on own Mac OS X server:
<strong>Original Problem</strong>
<ol>
<li>Set up WP MU in subdirectory off root /WPMU.</li>
<li>Created a user blog and username. Email sent to username</li>
<li>Fired up phpmyadmin and tables created properly</li>
<li>but when try to access blog at /WPMU/user get 404 not found error</li>
</ol>
<br>
<strong>Solution</strong>
<p>Looked through many forum posts but could find nothing that helped. Wondered, is the .htaccess actually being executed? Determined that it was not. Found httpd.conf (use locate). Add the following lines :</p>
<code>
<Directory "/Library/WebServer/Documents/WPMU">
AllowOverride All
</Directory>
</code>
<p>Now the htaccess is execute and the user's blog is working</p>
<p>Something to put into the documentation wiki I suspect</p>
