After seeing the discussion here about Blue Host and multi-site I went and checked with their sales department. Sure enough they do not like the wild card sub-domain.
My question is: Why on earth are they being recommended. Almost any host can support a single site WP install. This is a biggie and I'm sorely disillusioned in WordPress for not doing a better job of qualifying.
I realize from reading the other posts that people have gotten around the problem but really, who needs a bomb like that hidden in the closet waiting to go off.