It is creating the subfolders in the correct directory (under /blogs.dir/1/files/2006/12/), but there is just nothing in these subfolders. When I tell it to upload a file it does not give an error it just returns me back to the "Write Post" page. I do not get the Browse All button. The folders are being created, but my files are not going in that folder.
When I first installed MU, the upload path was /wp-content/upload but there was not a /uploads folder, so I was wondering if my upload path was wrong.
I am just kind of confused as to how the folders are being created, but the file is not going in there? Does that lead you to suspect anything else???
One other side note, I installed regular Wordpress onto the same webserver, and it had absolutely NO issues with uploads.