Directories not Resolving

My directories do not appear to be storing any data. Here is an example.

My installation is pointed to blog.mydomain.com.
I post a new blog. It displays fine on the main page; however when I click the title to view ONLY that blog it says the directory does not exist. It creates are url similar to this http://blog.mydomain.com/2008/04/texas-music-cafe-show-re-broadcast/

Any ideas on why this is happening?

For reference my blog can be found here. http://blog.stancrawford.com/

gable