I've tried it a bunch of different ways, but here's one way and tell me if it was wrong:
1. Installed WPMU and got it working with a fixed IP and wildcard DNS (*.sub.domain1.tld). New subdomains show up properly, the admin panels can be logged into...
2. I put sunrise.php into wp-content and domain_mapping.php into the mu-plugins directory. I uncommented the line in the wp-config.php file to enable sunrise.
3. Under Tools > Domain mapping, I set the IP address
4. I configured a blog. It works fine as a subdomain. The address is domain2.tld.sub.domain1.tld.
5. Under Tools > Domain mapping, I added domain2.tld. This is where it breaks. When I add this, the site (domain2.tld) doesn't load (well, it does, but it shows the site for sub.domain1.tld - the man WPMU install.)
Are you using the absolute latest version of the plugin (it was updated recently)?
Yes. 0.4.1. It was updated a couple weeks ago. I downloaded it again today just to double check, again.
You don't DO anything from that menu for domain mapping.
So from my experience this far, that's the only way I can get domain mapping to work.
You may also have to park the domain in question to your MU install.
"Park" has been used to mean so many different things over the years, I'll explain what I did and you tell me if that matches if what you mean by "park." I gave the domain an A record of the IP for the WPMU install. I know that is working because if I change the site URL under Site Admin > Blogs, and don't have it listed under Under Tools > Domain mapping, it loads and works.
On a related note, maybe the problem I'm having is a known issue. The plugin info says "Remote login is not included in this release. A user can be logged in on the main site but not logged in on the domain mapped one, or may even be logged in as another user."
In my mind I'm not doing any sort of remote login. I think of that as like connecting to an interface at a remote location - like SSH to a datacenter. So I thought that didn't apply to me, but maybe it does?
Thanks!