Any updates on this situation? I am in the same situation as Dansalmon, where I would like to have all member blogs under a subdirectory of their own.
Today we are running a standard WP.org blog at http://www.domain.com and running WPMU to power http://blogs.domain.com in order to achieve this effect, but it means people can potentially have two logins. I would much rather prefer to move to BuddyPress and take advantage of all the other features, but the addresses for user blogs is the only thing that bothers me. I would prefer that they be indicated as such in the URL string.
