WordPress MU

I am currently trying to get WPMU to install correctly, my host has told me that they have enabled vhost, and everything needed in order to have it set up as example.domain.com. Though it just is'nt seem to be working out that way.

I am able to get WPMU working with out the subdomain.

What I would like to know, is it possible to, for example:

Have WP installed on main directory (domain.com) and then install WPMU into blog.domain.com, so then the blogs created would be blog.domain.com/example. Would I be able to some how have listed at domain.com the list of most recently created, and updated blogs? Along with being able to show a list of all Themes installed at blog.domain.com?

Would this work, if I installed them both WP and WPMU into the same MYSQL Database? I am pretty much a newbie to all of this, but I am learning.

You dont have to install WP & WPMU because when you install WPMU it will create WP for admin then you can cutomize the theme "home" for the admin blog to make it show the latest post & signup page.

Regards the sub-domains blogname.yourdomain.com, you have to tell your host to enable mod-rewrite "wildcard DNS" then it will work well

All the blogs will be installed in the same MySql Database as you can see in my blog http://alzool.net