WordPress MU

Renaming to blogs.php doesn't work for me. I get an "internal server error" afterwards.
This is what I have in .htaccess:
RewriteRule ^files/(.*) /wp-inst/wp-content/blogs/files/$1 [L]
RewriteRule ^([_0-9a-zA-Z-]+)/files/(.*) wp-inst/wp-content/blogs/$1/files/$2 [L]
RewriteRule ^([_0-9a-zA-Z-]+)/wp-content/blogs/(.*)/files/(.*) /wp-inst/wp-content/blogs/$1/files/$3 [L]

I use to not have the first Rewrite. It doesn't matter if I put it in, use it alone, or all the above, nothing seems to fix the problem.

Reading through all the forums that have to do with image uploads and getting bits of information from each one, plus learning a little PHP on my spare time, is this correct to assume that if I wanted to change how files (image or whatever types) are uploaded, I would need to change the RewriteRule in the .htaccess file that is located in my wordpressmu folder? For example, I know that the upload path is /wp-content/blogs/(.*)/files/(.*)

If I wanted to change the path to something else, like wp/content/blogs/user_url(.*)/files/images/(.*)

or would I need to change it somewhere else? I've looked in so many forum post that they all are looking the same at this point.

Is there also another place I would need to look to change this function as well? like in the upload.php and upload-functions.php

any help would be greatly appreciated :)