WordPress vs. WordPressMU

allow our users the ability to register and create their own blog
I think that would definitely be MU.
https://mu.www.ads-software.com/

Thank you so much for the quick response. But MU is still in the beta process, correct? So then I guess WordPress will not allow our users to register and start creating their own blogs, right? If that is the case, then what exactly WordPress do? I’ve read this, https://www.asymptomatic.net/blogbreakdown.htm, comparison but still not very clear.

mu seems to be doing a pretty good job of powering wordpress.com – try it out ?

As it is stated in the ABOUT section (click on the top of this page) WP is a “personal publishing system”.
You can have multiple authors but they all will post in the same blog.
[MU stands for MultiUser]
And here we do not provide any kind of support for MU. If you have further questions regarding WPmu, please, use their forum.

Is MU has the same feature as WordPress except it’s multi-user?

Sorry asking stupid questions, but to do what I’m looking for, do I need to instal both WordPress and MU on the webserver?

To do what you want, you just need to install MU.

Currently, MU has a subset of the capabilities that WP has. i.e. users can not use plugins other than what the admin has allowed (for obvious reasons).

More info: https://codex.www.ads-software.com/WordPressMU