For those of you who haven’t figured out how to get the plugin working here’s some quick details I figured out after installing this myself.
1. When you download the WPMU-Signup-Captcha from WPMUDev you’ll get three files that you’ll need to dig out of the directory structures wp-captcha.php, wp-captcha.tff, and wpmu-signup-captcha.php.
2. wpmu-signup-captcha.php belongs in wp-content/mu-plugins
3. wp-captcha.php and wp-captcha.tff are supposed to be placed in the root directory of where your wordpress MU installation is running from.