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I'm curious if you're using Wordpress MU for this or if you've built your own system. I built an app & plugin installer (flooha.com) which could be used to build, install and customize any php app, so I have some experience in this area.

It's a smart move to limit which plugins can be installed, to offer a very short trial and to have no free plans.

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We allow our customers to use WordPress v3.0.1, which means either with OR without MU. Up to you.

We're NOT limiting plugins that can be installed. We're just building a list that we'll SUPPORT.

To further clarify, we're not using WordPress MU to power our clients. It's a custom system which allows us to deploy an instance of a customized WordPress install from an image when a new user signs up. We can bake in more security, curate plugins, and control the entire experience this way.

We don't actually stop anyone from installing a plugin, we simply suggest the best of class.

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