Blog Listing in multisite / buddypress not showing blogs on other domains

In another thread, my challenges moved off topic. I started this one hoping that when the solution is found, other members will easily find the answer in this thread.

Problem: When I visit the page for listing blogs in my multi-site with buddypress, I see only the blogs for the main url (folkview.com) and not the sites for the domains I add (pagannation.com)

There are currently two domains set up, both are public. I have WP 3+, Multi-Domain, and Buddypress installed.

folkview.com - On its own IP address, this is the installation of WP.
pagannation.com - The first domain added for multi-domain use.

The following blogs are set up:

folkview.com - the main site
test2.folkview.com
test.pagannation.com
http://www.pagannation.com

I would think the behavior should be one of the following:
1.
It would be listed with all the other blogs without respect to their domain names.
test.pagannation.com and http://www.pagannation.com would be listed at http://folkview.com/blogs. They are not.
2.
Or test.pagannation.com and http://www.pagannation.com would be listed at:
http://pagannation.com/blogs/ (the page doesn't exist)
while test2.folkview.com and folkview.com would be listed at:
http://folkview.com/blogs/ (that does happen)

Can you tell me if the behavior should be number 1 or number 2? If it is number 2, I figure I have a dns error but I am thinking it is supposed to act like 1 in which case I have no clue what could be going on.

Either way is fine for me.