Internal Server Error When Attempting Install

Hey There,

Was just trying to run through my first WPMU install and have already come across a stumbling block. I have been installing standard WP for years so didn't figure it would be too much of an issue however I followed the installation manual step by step to make sure and am now stuck.

I got everything FTP to the site and folder permissions set up, deleted the .htaccess and when I visit the site I am presented with a 500 Internal Server Error. I tried renaming htaccess.dist to .htaccess and this didn't help. Other than this I'm not sure what to do.

Further to this unsure where exactly to change Apache settings as I wondered if this was part of the problem?

FYI: Working on cPanel with my own VPS and WPMU 2.9.2

Thanks in advance!