I managed to get the network/site portion of 3.0 to work now.
However, when a user registers on the site nothing is created. I log in as admin and there are no new users or new sites or ANYTHING.
I know that I was instructed to create a folder called 'blogs.dir' and give it write permissions from the web (it is 777 right now) and that is where things are to be stored.
Does it wait to create the user/site after confirmation e-mail is replied or does it create it immediately? I ask this because e-mail doesn't work for me yet and I don't want to chase this creation problem if it is holding it somewhere and waiting to create it after confirmation.