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I think blogs.dir is supposed to be used to separate content for the different blogs on a network install of Wordpress (MU or 3.0+ with networks enabled), however, I've not been able to find a clear guide to using it. Can someone shed some light and maybe post a few links to information on how to set it up, what to put in there, what the permissions should be set to, etc. ?

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don't worry about it, WP handles this – onetrickpony Jun 27 '11 at 4:47
@One-Trick-Pony is right, WP handles all of this, apart of course from making the directory in your wp-content folder, that is the one thing you'll have to do yourself... – Piet Jun 27 '11 at 8:51
up vote 2 down vote accepted

blogs.dir was the way to handle specific blog plugins and themes when it was WordPress-MU but since version 3 came out and the WordPress-MU was integrated into WordPress Core and introduced WordPress Multisite, that's no longer the story.

WordPress Handles the creation of the new blogs/sites in the database and mainly in the background so you won't see too many things changing, but it also includes a new menu in the admin "Super Admin"

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which lets you handle the content for all sites in one place and they all site in one place.

so basically WordPress handle this issue of `blogs.dir' for you.

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