Is “site” a reserved word?

I have 2 WordPress installs on the same domain and server. Custom (pretty) permalinks worked on one, but not the other. Domain names have been changed to protect the innocent. 

I have:
http://www.mysite.com/site
which is in development. And
http://www.mysite.com/wordpress
which has been around for a while.

Both have the custom permalink setting of /%category%/%postname%/

/site gives me a 404 error.
/wordpress works fine.

Their .htaccess files are identical except that /wordpress’s says "wordpress" where /site’s says "site".

# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /site/
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /site/index.php [L]
</IfModule>

# END WordPress

The server is a Deluxe Linux server on Godaddy.

I followed the standard method of waiting after setting up the permalinks on a Godaddy server. I waited for days and /site still did not work.

/wordpress did not have the custom permalinks on yet.  It started working immediately after switching. (I think there may have been an existing empty .htaccess file.)

So, same versions of WordPress, same Linux server, similar setup, no weird plugins, same .htaccess file, same database with different prefixes for the tables.

I have tried reinstalling /site using the built-in updater.  I even tried deleting the database tables and uploading a fresh install of WordPress.

Then I had the idea to rename the "site" folder thinking maybe "site" was a reserved word or something.  So I went into the General settings, changed the paths to http://www.mysite.com/web, saved changes, and used FTP to change the folder name from "site" to "web".

It worked.

Even the .htaccess file was automatically changed.

Just to be sure, I changed "web" back to "site" and the permalinks stopped working until I changed it back to "web".

Does anyone have any insight?  Is this a WordPress, Apache, or a Godaddy thing?

Postie 1.3.2 and WordPress MU

There is a problem with Postie 1.3.2 and WordPress MU.

On the blogs within my installation of WordPress MU, I would get this error when I went to the backend of the blogs that had Postie 1.3.2 activated:

Fatal error: Call to undefined function wp_get_current_user() in /<install path>/wp-includes/capabilities.php on line 920

The quickest fix was to use FTP to delete the plugin and replace it with the earlier version of Postie (1.3.1).  You can get it here:
http://wordpress.org/extend/plugins/postie/download/

I activated Postie 1.3.1 and everything seemed to be OK.

Now I just have to remember not to update the plugin until the issue is resolved.

Update: The text of the message is coming through, but it drops the subject.  It was adding “(via Postie)” until I deactivated the Postie Filter plugin. Anyone know why it’s doing this?  Please comment.