I found the problem had nothing to do with MT.

For future reference, the rebuild feature does not work if you have ZoneAlarm Pro running with the Ad Blocker set at Medium or Higher. You must disable Ad Blocking and Cookie Control while working with the administrative features of MT. Otherwise, ZoneAlarm will prevent the browser from acting in accordance with the refresh properties of the rebuild window.

Thanks!  :)

When I try to rebuild the site the rebuild window opens and then it just hangs, never moving on to the next page to rebuild. I do not see any errors in the window, nor do I receive any errors in my site's error logs either.

I checked all the permissions on the db directory, the cgi directory, and the blog directories.

I also, out of desperation, exported my original entries and rebuilt the entire MT 2.0 from scratch (including the db). However, I still have the same problem of not being able to rebuild anything.

BTW, I can save new entries fine. I just cannot rebuild.  

Thanks in advance for any help...