Josh,

SourceForge bug tracker is down so I figured I would drop this here for now.

Tried to install 2.0b2 (not 2.0b1) in subdirectory /new/help/ 

returned: "Not Found" "newhelp does not exist. Would you like to create it?"

Repeated for /help/ directory with same results. Seems that maybe the redirect is causing an issue here.

That does sound like the redirect problem. We had a bug thread going on sourceforge where I think I recommended removing a line from the .htaccess file:

RewriteCond %{REQUEST_FILENAME} !-d

Without this line, requests for directories ( like /new/help ) will be redirected to the parent index.php. Is that what's going on?

That line is already commented out. #RewriteCond %{REQUEST_FILENAME} !-d

Sorry, if you uncomment the RewriteCond %{REQUEST_FILENAME} !-d line, it will work for installing in a sub directory. You just wouldn't be able to have any files the same name as any of the folders on your server.

OH! Got it. Works fine. Thanks. . .  not that I use a subdirectory but wanted to test the plugins for that scenario.