WordPress MU

I'm trying to install the newest version of Wordpress MU on a school server. I've gotten to the place where I'm given login information. I clicked the link to "login" and I got the following message:

"The server encountered an internal error and was unable to complete your request. Error message:
The server encountered an internal error and was unable to complete your request. Either the server is overloaded or there was an error in a CGI script."

Now when I go to the URL I don't even go to the page where it says I've successfully installed Wordpress MU, I just go to the error page.

I suspect that it may have something to do with my .htaccess. I have htaccess.dist on the server but I can't find the .htaccess file. Have I missed a step here? .htaccess may be hiding, but even when I look for hidden files, I can't find it.

Lack of an htaccess file won't give you that error though.

Is the server running php as cgi?
How about installing the RC of Wordpress, then enabling the network? (wpmu is being merged with wordpress)

Is the RC pretty free of bugs? I've got some designing to do before presenting something to my boss on Wednesday. The 3.0 is probably a better solution but I don't want to use it if I'm going to run into a lot of problems.

I'll check out the CGI.

The RC has been pretty darn stable for quite a bit. The last issues are mostly translations strings and it was "pencils down" last night. It could be out in a week or two. I'm running it on a few sites.