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but it won't be what you really want because of some reasons - what you want is a multi-blog system and wordpress itself doesn't support that feature, it's just a multi-user blog system, i.e. many users could post on one blog so there's one site they all are using, so one theme. using mod_rewrite to redirect you'll have to make different clone installation for each user and then you'll imitate it, but you'll have to make each wordpress installation separately by your own. so i've been looking for the same feature (wanted each user to simply register by himself and then got his own blog which can moderate himself, like theme, etc.) and concluded it's still not possible under XOOPS now.
there are some other possibilities not connected to xoops, so sorry i'll mention them here in the XOOPS community site, that do this - at this moment i've found 2 open source multi-blog systems (standalone applications) that work and give you the wanted feature:
1) pLog (
http://plogworld.net/) - i think it's much better and has a good working development team;
2) WordPressMU (
http://mu.wordpress.org/) - that's a different project than WordPress himself but still got a lot of problems working and seems like a very small development team, but on the other side it seems to be used well on existing multi-blog sites.
And another one i forgot - Wang's Wordpress Multi-blog Hack (
http://www.wswang.com/bloh/?p=3) - that seems to be working ok as i tried it but don't relly on a real-working support, it seems to be a real problem.
So, it's from me.
Greetings!