If I'm setting up a brand new multisite installation with WordPress in it's own folder (say /wp/) why can't I configure the network to use subdomains instead of subfolders?

Currently, if I try to setup the network with the WordPress core in it's own folder I'm not allowed to choose between a subdomain-based or sub-folder based network. I must use sub-folders. What are the technical reasons for this?

I've scoured trac and Google for an answer to this question with no luck. A more detailed explanation than what is provided on http://codex.wordpress.org/Before_You_Create_A_Network or http://codex.wordpress.org/Create_A_Network would be greatly appreciated.



I figured it out. The fact is, a network can use subdomains or subfolders, even when WordPress is installed in it's own folder as long as the main site's HOME URL is set to domain.com and not to the sub folder location.

Here's an example:

I setup a clean install of WordPress using Mark Jaquith's WordPress Skeleton which places WordPress's core files at domain.com/wp/. However, when trying to run the initial install script, WordPress chokes on its own redirects. (It keeps trying to load domain.com/wp-admin/install.php instead of domain.com/wp/wp-admin/install.php. Maybe a bug report for another day?)

To get around that, I manually typed in the correct path to the install script (domain.com/wp/wp-admin/network.php). By doing this, WordPress sets the HOME URL to domain.com/wp instead of just domain.com. (Which makes sense, really.)

By changing the site's HOME URL to domain.com, I am now able to choose a subdomain or subfolder installation when setting up the multisite.

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