Custom install help please.

Here is my situation:
I would like to set up a custom WP install with the following directory structure:

(this page would show lastest blog posts & static content)
mydomain.com/index.php

(this would be where all of the blog postings would reside)
mydomain.com/blog/

(this would be where all of the static postings would reside)
mydomain.com/page_one/
mydomain.com/page_two/
mydomain.com/page_three/
mydomain.com/page_three/a/
mydomain.com/page_three/b/
mydomain.com/page_three/c/

How is this possible?
Would it be a combination of updating the wp-config.php file
and .htaccess file and moving wp directories to appropriate locations?

Thank you very much!

Frederick