When I used this on my 3.4.1 multisite to create a new blog, it seemd to work BUT then it was absent from the broadcast post list (via ThreeWP Broadcast plugin) and a few other oddities happening. In short, my best guess was that this plugin is interfering in someway with the normal site creation process. Perhaps there are new methods that WordPress 3.4.1 uses that this plugin hasn't been updated to use??? I'm no expert on plugin development, but I won't give this plugin another look-in until it's back on track. Great idea though!