There was a thread of a fatal error when someone was installing Wordpress MU onto GoDaddy. In the MU Forums, one of the most intelligent MU people in the community ( VentureMaker ) had some good advice for this problem.
Essentially, Wordpress MU has problems with Windows Servers, and should be installed in Linux servers only. I do not know whether GoDaddy has Linux servers available.
For my MU hosting, I use Hostgator. Their service is pretty good, and they allowed me to install four Wordpress MU CMS’s on a shared hosting system ( one as a subdomain form, three others as a subdirectory form ). None of them have many blogs or get a lot of traffic, but I do know I will have to upgrade to a better Hostgator ( or alternative ) service if there are too many users/blogs/traffic.
Nonetheless, if you are trying to install Wordpress MU, make sure you use a hosting plan with Linux servers. I highly recommend Hostgator if you are looking for good service ( their live chat troubleshooting is pretty good ).
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