Hi,
I am running WPMU 2.7 at http://blognuno.com/ .
So far, there have been three blogs created on there. The first two worked fine, however the third one(and more created after that) did not work. The subdomain is created fine but when you go on the newly created blog it says 'The blog you have requested is not installed properly. Please contact the system administrator.' I have tried creating blogs both as a new user and a registered user but with no luck. You can see the proof for yourself at http://blog.blognuno.com/, or even try signing up at http://www.blognuno.com/ .