I cannot find a hack or a mod for this anywhere but if one exists can someone point me to it? Here is how it works, users can sign up at /wp-register.php is there a way of giving the new users a scaled down admin panel and a new directory is created for the new user?
New user signs up (fred)
dir created based on login name (/fred)
and now you can go to http://www.site.com/fred and see freds blog.