Running multiple websites in one machine using a LAMP (Linux, Apache, MySql, PHP) stack requires some heavy and dirty hacking on the different configuration files of each of the programs mentioned.
To simplify installation and maintenance, the best way to do it is to use a Web Hosting Manager/Panel. Popular products such as Plesk or cPanel are good programs only if you are willing to shell out some monies. Or you can opt for ISPConfig.
ISPConfig is a free and open source hosting control panel for Linux. Major features includes creating virtual hosts, FTP servers, email servers and MySql-based Content Management Systems (CMS) such as Joomla. Since it's a hosting manager, you can set disk quotas, traffic control, antivirus, billing and even a trouble ticket system. The full features are listed here.
I'm currently using ISPConfig on Ubuntu with multiple Joomla installs to host websites in the office and some other personal sites. A real perfect low-cost hosting solution.
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