Multi-User Chat configuration

Hi. I have ejabberd configured on my server, and for the most part it's working great. The only problem I'm having now is getting multi-user chat working. From all the documentation I've read, my understanding is that the hostname for MUC is supposed to be the jabber server hostname prefixed by conference. So, in my specific example:

{host, "loulug.cs.olemiss.edu"}
{mod_muc, [{access, muc},
{access_create, muc},
{access_admin, muc_admin}]}

I'm using the Gaim 1.1.1. When I add a chat room, it shows up in my buddy list, lets me connect, then gives me the following dialog upon initial connection:
"You are creating a new room. Would you like to configure it, or accept the default settings?"

If I click Accept Defaults, it lets me into the room, and other users can join, and things seem to work. However, once everyone leaves, the next time I login it prompts me again for configuring the room. I want this to be a permanent room, so I clicked Configure Room. I then got this error message:
"Unable to configure room loulug@conference.loulug.cs.olemiss.edu".

I've tried this several times, but always get the same error. My guess is that it's failing because it cannot resolve the DNS name conference.loulug.cs.olemiss.edu (which does not exist). Also, strangely enough, nothing related to the chat room is logged.

So, with all that said, I have a few questions. I cannot add a new DNS entry specifically for MUC, so how do I configure MUC to work? They both need to share the one DNS entry loulug.cs.olemiss.edu. How can I setup a permanant chat room? How can I configure it? How do I enable logging for MUC?

I know this is a long first post, but I've been fighting MUC on Jabber for about 6 months, and I'm so ready to just get it done. :-) Thanks in advance for the help.