BuddyPress.org

I can confirm that this is a Buddypress problem as I have disabled the plug-in, and created a blog with success.

However, when the plug-in is active, the creation of blogs are thrown into an error giving the following:

When editing:

Warning: Invalid argument supplied for foreach() in /home/public_html/wp-admin/wpmu-blogs.php on line 149

And when visiting:

The blog you have requested is not installed properly. Please contact the system administrator.

As for Angophora instruction, I am sorry but I am confused. You may need to clarify, and also if this is on a Window or Linux box. What about a solution for those who are not on a localhost?