WordPress MU

Hallo i want to install wp mu in mydomain.com/blog and use it as user.mydomain.com instead of mydomain.com/blog/user. Is it possible? i installed and tried but i have some problems. For example after i installed wp mu as subdomain under sub directory mydomain.com/blog and created a user. The activation mail came but there was url problem with it. the url to user will use to reach his page looks http://user.mydomain.com/blog/ and activation link is also wrong:

http://user.mydomain.com/blog/wp-login.php

but it must be user.mydomain.com and user.mydomain.com/wp-login.php

what is the problem? cant i use wordpress mu in a subdirectory with subdomains?

Thank you

Is it possible?

No, it's not possible. Maybe under 3.0 as you can do it under regular wordpress but many people have tried previously and not been able to do it.

No, and not in 3.0 either.

If you want the blogs to be username.mydomain.com, it absolutely positively has to be installed in mydomain.com.

There is no way around it.