I've searched through the forums and havent found the same issue i seem to have.
I just enabled multisite. I ran the setup and everything seemed to go fine. I updated the wp-config and the .htaccess file as instructed.
I can view the network admin area and tried creating two new blogs. These blogs show up in the admin area, however the folders/databases are not being created on the server.
No idea where to begin to look here. Any help is much appreciated.