I searched and saw no solution for this. I installed MU successfully, then later setup had the virtual host thinggy setup. I am in a slightly unusual situation. I use everydns.net instead of my cpanel controlling the DNS. Here's the problem, the subdomains that i create blogs at don't work. See it for yourself if you want:
Site: http://www.caudillclan.com
Subdomain: test.caudillclan.com
After I saw that this didn't work, I reinstalled MU, to see if it would make a difference. It did not. Any Ideas?