As I have stated in this post, there's the "I cannot read the gallery's xml file" error in my WPMU.
I have never tested it with WPMU, so I cannot say if it is working or not.
Is the path that the error message tells you correct? Are you using the development version?
Anyways, to answer your question, the paths are all OK. Images are loading just fine in the admin panel, and the XML file is correct. The page is here: http://rei.tsuioku.net/about/
And no, I am using the latest version I downloaded from WP.org
Since you have not tested it with WPMU, I'll help out where I can, since I would really love to use this plugin (instead of the slightly more complicated NextGEN Gallery). Although, I would have to say I am not too good with scripts, really.