WordPress MU

This is my first time using Wordpress (MU as well), and I'm trying to get it running.

The 'root' blog works fine at 24hourmadness.com/blogs/

However, when I added a new member/blog, it then said the URL is for example,
amberj.24hourmadness.com/blogs

It doesn't work.

It also doesn't work if you remove the /blogs

Help??

Sounds like you missed most of the steps included in the readme file. Best bet would be to delete everything and start again. If you've installed the file into a subdirectory and are trying to do subdomains, it really sounds like you may have missed it.