WordPress MU

Hi I have recently been offered to come up with a solution for a professional body which has hundreds of members. They want to offer their members their own websites (members to have own domains), which they can manage themselves, and we are to support this process i.e. set it up for them and support them if something breaks.

So my question is would it be a good idea to set up a MU installation and just create blogs for each member who wants a website and map a domain for each one, OR the old school approach of setting up a separate wordpress installation for each member. I am guessing there is atleast one con, that if the MU breaks, all sites break?

Thanks

Yes, you can do that with mu.

Thanks, I figured that I can. I want to know whether it is stable enough to be trusted with hundreds of domains running on a single installation?

Well, I've known of (and set up, and manage) a few sites just like that, which have been running for over a year or two.