WordPress MU

I've been having some real trouble setting WMPU up on my new webhost. I cannot get subdomains to work, so some help would be appreciated. Here's what's what:

1. My host does not support domain wildcards.
2. Mod rewrite works.
3. Global variables are turned off.

I try to get around point nr1 by modifying wp-signup.php so that it communicates with my control panel (DirectAdmin). It logs in to the control panel and registers the subdomain manually. So if a user sets up blog.blogsite.com, that subdomain is created by DirectAdmin.

But the problem is, the activation links in the confirmation emails do not work. They point to a 500 Internal Server Error page.

Note that when DirectAdmin creates the subdomain, a folder is created in my website root named after the subdomain. Is that what's going wrong? Is the subdomain poiting to a wrong (non-WPMU) location? That's all I can come up with :-/

My host does not support domain wildcards.

WPMU with subdomains will not work without that, even with manually modifying the dbs. I would find a new host. Do a search of the forums for 'synhosting', the folks I recommend for threads on who will support wpmu and who won't.

I should have done my homework before signing up with my current host I guess. So there's no way I can get things to work without them enabling domain wildcards for me?

Another not so related question: when you register/activate a new blog (with subdomain), should there be a folder named after the user or blog created in the root of your site? Because when I add a blog/user via the WP admin, that doesn't happen.

Not that we're aware of and no, no folder. Everything is done virtually.