I've just released a new plugin that creates a global tags or sitewide tags page for WordPress MU. Blog post is here with more info: http://ocaoimh.ie/2008/07/19/sitewide-tags-pages-for-wordpress-mu/
It's the first release, so it's basic. It doesn't have any spammer protection or mass delete functionality, and from experience working on the "Hot Topics" code on WordPress.com, the spammers soon figure out how valuable these pages are.
As the plugin feeds all the posts on the site into one blog that also means you get sidewide feeds too for free. You can even subscribe to different categories or tag feeds as well!