WordPress MU

So here is what I'm trying to accomplish.

I have a domain name registered with GoDaddy and Google Apps running on it. And I have a hosting account with CPanel on another domain.

Let's say the domain is mydomain.tld and the host is on sub.otherdomain.tld. Also assume that Wordpress MU is installed in the directory ~/public_html/wpmu/.

What I want to achieve, is have Wordpress MU blogs accessible through blogs.mydomain.tld/blog_name without the ugliness of forwarding.

I tried different things, each one ending up with different errors.

The closer to the solution I could guess was trying to map blogs.mydomain.tld to a subdomain on the host pointing to the Wordpress MU folder, using an add-on domain on CPanel.

I believe the problem here lies somehow in the initial installation of WPMU where I declared that WPMU is on blogs.mydomain.tld. I got a 500.

I'd really appreciate it if someone could help me with this!

Create an add on domain on your cpanel account for blogs.mydomain.tld

Point the CNAME of your blogs.mydomain.tld to the cpanel host.

Put WPMU in the public_html/blogs directory that was created by cpanel

Set it up as a sub-directory install

Done.

In fact this was one of the things that I tried before, and I did it once again now, fresh new settings.

Add-on domain: blogs.sub.otherdomain.tld for blogs.mydomain.tld
WPMU folder: public_html/blogs
CNAME: blogs.mydomain.tld to sub.otherdomain.tld

When I access blogs.sub.otherdomain.tld I get the installation page just fine, however, if I try blogs.mydomain.tld it gets me on the main page (and not the subdomain folder!) and trying to access blogs.domain.tld/blogs gives a 404.

Clues?