I tried installing Lyceum a few months back but couldn’t get it working right. Decided this evening to give the latest version (0.34) a whirl and I’m pleased to report it installs smoothly. Simply point the webroot at src/lyceum, pop the database info in the config file and go through the installation wizard and you’re done.
Now that’s complete you have a working system that lets you easily run a blogging community. Creating a new blog is as simple as filling in a registration form and checking your email for the password. There is also a plugin to hook up with LDAP – which must be very exciting if you’re into that sort of thing 
It’s interesting that whilst Wordpress has it’s own multi user version in Wordpress MU (used on wordpress.org) that even has a supported Enterprise version someone has felt it necessary to provide an alternative solution with a substantially altered structure. Lyceum has a FAQ entry on the differences.
I’ll be giving installing MU a go tomorrow and then fiddling with er… appraising each system to see which is best for my purposes.
Glad that you found installation to be nice and smooth. Let us know if you have any questions or ideas.
-John (Lyceum programmer)