I use lighttpd and I've been trying to get wordpress to work when installed in /blog instead of being the main page of my site.
When installed in / wordpress works fine, and I have no troubles.
When installed in /blog instead of wordpress php files being parsed they are being sent to the user (as application/octet-stream mime type).
I also have Gallery2 installed in /gallery2 and it works without a problem.
I'm using mod_fastcgi and PHP 4.3.10-16 (cgi-fcgi)