Is domain mapping not working because my WPMU is not setup as subdomain

We've been at this for three days now. Trying to get the Domain Mapping plugin to work with my site and sub-sites.

To recap, Domain Mapping has been setup properly, You guys have observed settings via WPMU dashboard.

I followed everything in the "usage" instructions, but its not working. I went into my multisite primary site's cpanel and tried to set up an A record, after that did work so I tried a CName. After that didn't work I went into WHM account set up a DNS Zone and that didn't work.

POSSIBLE CONFLICT!!!!
I did notice that my site is setup to create subdirectories (sitemerce.com/vivamexicojc), and my host "A" and CNames creates subdomains (vivamexicojc.sitemerce.com) not sure if this is the issue of why it's not mapping.

I turned off domain mapping for that subdirectory until you help me get it resolved. Please let me know what kind of access you'll need to help me figure this out. Thanks.

Main site is: sitemerce.com
Subdomain is: sitemerce.com/vivamexicojc.com
Client's URL is: vivamexicojc.com