I thought that blogs.php was no longer needed - and to be deleted?
I did update the htaccess file this is what it says:
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]
# uploaded files
RewriteRule ^([_0-9a-zA-Z-]+/)?files/(.+) wp-includes/ms-files.php?file=$2 [L]
# add a trailing slash to /wp-admin
RewriteRule ^([_0-9a-zA-Z-]+/)?wp-admin$ $1wp-admin/ [R=301,L]
RewriteCond %{REQUEST_FILENAME} -f [OR]
RewriteCond %{REQUEST_FILENAME} -d
RewriteRule ^ - [L]
RewriteRule ^([_0-9a-zA-Z-]+/)?(wp-(content|admin|includes).*) $2 [L]
RewriteRule ^([_0-9a-zA-Z-]+/)?(.*\.php)$ $2 [L]
RewriteRule . index.php [L]
My host ran a script to fix any potential ownership problems with the files, and this did nothing but delete my already created htaccess files.
Now here's something interesting:
If I put the file in the blogs.dir directory without any subdirectories then the file is accessible.
See here: http://hanover4square.org/wp-content/blogs.dir/4sqlogo.jpg
It is still fine here: http://hanover4square.org/wp-content/blogs.dir/1/4sqlogo.jpg
But if I move the same file to the files sub-directory within blogs.dir it is not accessible?
See here: http://hanover4square.org/wp-content/blogs.dir/1/files/4sqlogo.jpg
But if I create a sub-directory called file1 the file is accessible?
See here: http://hanover4square.org/wp-content/blogs.dir/1/file1/4sqlogo.jpg
The permission on blogs.dir/1/files was 777 - so I changed it to 755 - but that didn't help.
There must be an issue with the upload path somewhere in the code?