This is probably a stupid question, but it may help me troubleshoot my problems in setting up Wordpress Mu. What exactly does Mu use mod_rewrite for? Is it purely just for rewriting post URLs or is it also used to create the blog subdirectories/subdomains? My host does its own URL rewriting and I suspect that mod_rewrite is shut off.
On regular Wordpress blogs, you can just keep it on Ugly Permalinks and it'll be fine but it seems that Mu defaulting to month/day/post formatting is causing errors. If mod_rewrite also creates the subdirectories/subdomains for each created blog, then I can give up now and quit banging my head against a wall.