You seem to be trying to use the bp home theme as the default theme for all new blogs. Is that right? The bp home theme was not designed to be used across all blogs. If you are getting 404 errors when using the bp home theme on subdomains, then you will get these errors you describe. You can pick the blog id that the bp home theme operates on with define( ‘BP_ROOT_BLOG’, 1 );
I just found a new option that may relate to your problem BP_ENABLE_MULTIBLOG. It looks like if you define(‘BP_ENABLE_MULTIBLOG’, true) in your bp-custom.php file it allows bp to hijack urls on all blogs. Thus getting your links to work.
Note: I just tested this and it works.
Burt,
Thanks for your suggestion to use ‘BP_ENABLE_MULTIBLOG’, it fixes the problem that has driven me mad, especially since the DEMO site has the same issue