Steve - I appreciate the help. After re-installing a few times and trying different things here is my conclusion:
1) I cannot install in the root. First, I have an index.php but more importantly my ISP's version of CPanel continually overwrites the .htaccess file. WP is NOT my main site, it is a relatively minor add-on for me - so it needs to go in a subdirectory.
2) You universal rewrite in the other post is great if someone was running an open WP Mu site with numerous blogs on subdomains. I tested it and what I realized very quickly is that is a person went to http://anything.domain.com, assuming anything wasn't an existing blog, they end up at the main WP Mu page. In my case, since I do not have open registration and a limited number of blogs, this is not a desired result.
3) I did use your ealier "single domain" solution, which is what I ended up going with. This is still not ideal though. I installed WP Mu in the .../public_html/wp/ folder. When I create a subdomain in WP and a user now goes to http://blog.domain.com they are instantly taken to http://blog.domain.com/wp/. While this works, my "ideal" solution would be to have the blog appear at the root of the domain, not a subfolder.
While the solution works, and again I appreciate it, I am most likely going to roll back to real subdomains and multiple installs of WP (not WP Mu). This was a better solution for my needs.