Its more or less the same problem which i have faced.
Before going further i have a small question. Is mysql database is created in first installation of Wp2.6 ?
Since the word press installation saves the path i.e.
http://<domain.com>/otherdir in database. So please check in database and modify there.
It was difficult for me earlier , but to do hands on , i found a site http://www.click2try.com or a direct link for wordpress http://www.click2try.com/catalog/Communications/WordPress/details and tested the complete word press appliance there. The version for wordpress there is 2.6
Hope above information will help to fix the issue , or else please revert back.
madkins
There is a site where you can try WordPress appliance without the trouble of installing and configuration. You can sign up for free and it’s easy to run applications right from your browser.
Its having latest version of wordpress deployed on linux virtual appliance.
http://www.click2try.com/catalog/Communications/WordPress/details
