WordPress MU

I have WPMU 1.0 installed on my site with subdomain. Recently, I noticed that new blogs are not creating anymore. When I click on the new blog activation link in the email (also when I try get new blog with existing user), only header section is loaded. Then I click again on the activation link and it says blog already created. But when I go to blog, it doesn't show anything, even not 404.
In my host cPanel, error message is like this:

"GET /wp-content/themes//style.css HTTP/1.1" 404 177 "http://blogname.mysite.com/wp-activate.php?key=4567983db8555d"

Notice that there is nothing between "themes/" and "/style.css". There must be skin dir (in my case, "home" is default skin) I think.

Can someone please help me?

I replaced wpmu-functions with latest version and I can create new blog from site_admin, but can't create new blog in any other way :(

I tried uninstalling some plugins and problem was with "widgets" plugin! When I delete widgets.php in mu-plugins, it started creating new blogs. Now I have to check whether it was because of specific widget or widgets plugin itself
(I don't have knowledge in php, so I'll just try deleting widgets one by one :) )

I deleted widgets plugin, because it was causing the error. It was installed in 'mu-plugins' folder, so it's enabled by default. I tried widgetizing 'home' theme, but that couldn't solve the issue.

Is it possible to disable 'widgets' plugin in only main blog, but enabled on all other blogs? (plugin manager didn't work with mu-plugins...)

many of us are using the wdgets pluin in the mu-plugin without any problems at all. If you had the default widgets plugin and no add-ons, and the default MU install, then I dunno what to tell you, because they work, and they work together.

(widgets and MU were built by the same people.)

Now the problem appears to be in "too many" plugins in mu-plugins folder. When I copy few plugins, it can create new blogs, but when I add more than 8 or so plugins (including custom widgets) it can't create new blog.

In wp-content folder, there is an error log saying:
________________________
[16-Jan-2007 22:02:18] PHP Fatal error: Call to undefined function: graceful_fail() in /home/mydbusername/public_html/wp-content/blogs.php on line 77
________________________

Someone please help

I installed wpmu 1.1 and everything seems to be fine now.