I have the same type of problem. I downloaded the latest versions of both WPMU and BP and installed WPMU with no problem. I uploaded all of the BP files to the ‘plugins’ directory. When I try to activate it, I get this message:
Fatal error: require_once() [function.require]: Failed opening required ‘/home/mmallory/public_html/greenworldzone.com/wp-content/plugins/buddypress/bp-core.php’ (include_path=’.:/usr/lib/php:/usr/local/lib/php’) in /home/mmallory/public_html/greenworldzone.com/wp-content/plugins/bp-loader.php on line 19