noob sub-directory question

I have my wordpress install directly in DocumentRoot (i.e. DocumentRoot/wp-content etc.). When I finish the multisite install, the wp-config text it gives me is :

define(‘MULTISITE’, true);
define(‘SUBDOMAIN_INSTALL’, false);
$base = ‘/’;
define(‘DOMAIN_CURRENT_SITE’, ‘mydomain.com’ );
define(‘PATH_CURRENT_SITE’, ‘/’);
define(‘SITE_ID_CURRENT_SITE’, 1);
define(‘BLOG_ID_CURRENT_SITE’, 1);

When I try to create additional blogs as sub-directories, the new tables are created, but the blogs are not accessible. This has probably has something to do with the “wordpress can’t have its own directory” clause but I don’t understand what that means (since you can’t install wordpress *outside* of a directory). Help?