Still trying to resolve issue above – I updated my WPMU to 2.6.3, but this didn’t seem to help. I would like to have “nice” permalinks if possible.

Any idea why my tag cloud links point to:
myblogs/tags/blog/tag/mytag
instead of:
myblogs/tags/tag/mytag?

It seems to be working fine on the front page of WordPress.com…! Perhaps they are using a different solution?

Thanks for the plugin anyhoo.
Mike