Install WordPress MU outside htdocs

WordPress expects certain directory structure. Now, there are some constants available that you could change in you wp-config.php and it should work, in theory anyway. The thing is that many plugins expect the default directory structure (and names) and will break if you change this. I have never tried to do what you propose, my limit has been renaming the wp-content directory.

See http://codex.wordpress.org/Editing_wp-config.php#Moving_wp-content_folder and below

I can think of one situation why you would like to do this: to have a single code to update. In that case it might be worth to take a look at Network feature: http://codex.wordpress.org/Create_A_Network