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The latest version of the Wordpress Blog module for XOOPS (version 2.04) is supposed to be a true Multi-user Blog with multiple Blogs. However, it is important to note that this is a "hacked" version of Wordpress to introduce multi-blog functionality.
If you are having trouble getting the latest Wordpress module to work, I would recommend posting your question on phppp's support site for his modules (
http://www.xoopsforge.com/). phppp is generally very good about providing support for his modules, so you'll likely get better support directly from his site.
Now, with that said, what solution you choose will directly depend on what functionality you wish to have. If your primary objective is to provide free Blogs to your members and there are few other XOOPS-specific features you need, then you might be happier using
Wordpress MU. There are several "plug-ins" available for Wordpress MU that would allow you to run a forum, downloads section, links section, and other generic functionality that is available in XOOPS.
However, if you have a well established XOOPS site that uses many XOOPS-specific modules, then I highly recommend the Wordpress module from phppp.
I definitely don't recommend Wordpress ME 0.33. I manage a couple sites that use that module and the anti-spam features are non-existent. I actually had to hack the code to remove trackback functionality because of all the trackback spam I was getting. The Wordpress module is compatible with anti-spam plug-ins freely available from the Wordpress community.
HTH.
James
Insanity can be defined as "doing the same thing over and over and expecting different results."
Stupidity is not a crime. Therefore, you are free to go.