BuddyPress on Shared w/ MU

Quick question. I host with Web Hosting Hub (cpanel, paid shared hosting, WP compatible) and have a root-level multi-site install (its using blogs.dir for uploads). WP version 3.2.1.

Can I run BuddyPress itself on my setup?

Also, I was told that WordPress is supposed to be creating generated thumbnails in wp-content/blogs.dir/2/files/2011/xx. I see all the original featured images there, but I am not seeing any generated thumbnail versions of those same images. I was told on BuddyPress to verify this before installing.

Any advice?