I finally got the MU installation working the way I desire, though it ended up requiring some code hacking. Why? For some reason, the wpmu-settings file strips out “www.” before evaluating the blog… and when it did that and redirected, it found my Apache redirect… which sent it back to www, which stripped… and so on.
It ended up being a very easy fix… comment out two lines and bingo! the code works how I expected. But it took hours of searching because the code somehow thinks a “www” subdomain should be handled differently than any other subdomain. I disagree, and once I remove the “www” restriction in the admin tool, I expect the code to behave consistently.
I finally found the solution on a couple of the WPMU forum threads where others had the same problem — I simply wasn’t searching for “www” because… well… why would that subdomain be handled any different than all others I was using?
I also found a link to a multisite manager which could eliminate a bunch of the multi-domain manual database work I was doing. I’m downloading it and will have to play with it later when I have free time…