Start with a brand new copy of cvs.
You will not pass the install requirements because I did not "chmod -R a+w default".
Also if you create the www.example.com directory but forget to chmod it. Then you follow the onscreen instructions it will fail, because it does not have write to sites/www.example.com/settings.php
Why do we need both directories to be writable by the webserver. I believe that we are just missing another "conf_path()" for the checking of the permissions, but I can not find where.
Also the notice message that you need to remove permissions does not say anything about removing permission from the "default" directory, it only tells you about www.example.com.