I just created a new WPMU 2.9.2 install with Multi-DB (16). I had problems with the db password on Multi-DB install and changed it in the wp-config.php and wp-content/db-config.php. The new site loaded fine. On creating a new sub-blog through admin panel, the blog creates in WP but I get a server 404 error when I go to the new site.
I've checked the config files and my wildcard A looks OK. I looked at .htaccess but I'm not sure what I'm looking for. I asked my host support and they don't see anything wrong. Any suggestions?