Re: 404 on localhost installation
If you installed WPMU with the subdomain option and not the directory option you won’t be able to create *any* user blogs (or the WPMU site blog) if you don’t edit the windowssystem32driversetchosts file.
Windows uses this file for DNS resolution. e.g. mylovelysite.org -> 127.0.0.1 (localhost)
A standalone Windows desktop doesn’t use DNS to map these things. So… create entries for your site and all the blogs you will create in WPMU:
(hosts file entries)
Restart Apache (it only looks at the hosts file on boot), wander back into WPMU and create blogs with names userblog1, userblog2.
Works the same in BP. Create your usernameblog.mylovelysite.org mapping in hosts file. Restart Apache and play.