Is it really this hard? Multiple websites – same server

I have a wiki, blogs, webmail and web calendar all working just fantastically on my XServe (10.6.4). When you type in wiki.domain.com, you go to the XServe page where you can log in and access wikis, blogs, etc. We have webmail hosted via SSL so you need to access https... to get the mail link to work. Aliases all work, external DNS all works, it's just great. Now...all I want to do...is set up a part of the server to host websites by kids and faculty (the wiki is great, but it can't do some stuff that iWeb can do). We don't want to get fancy with CSS style sheets, asp pages, SSIs, CGI scripts - yet - I'm just trying to get it set up to work correctly. I have read the Web Tech Admin documentation but I guess I'm just too stupid to understand what it's trying to tell me. In Server Admin I have created a new site and pointed it to an entirely different folder on my XServe - different than that folder used by the Wiki, etc. I have set an alias pointing "iweb.domain.com" to my XServe - the only server hosting web services. When I type "iweb.domain.com" in Safari, I get the wiki login page. It seems to me that if I set the alias to point to the correct server (verified in dig and host) AND I have configured the site to use an entirely different file folder on the server...why am I getting the wiki page? (Yes, I reset EVERYTHING in Safari.) In looking at how the wiki was configured (I didn't do it - I inherited it) I see a Users folder with all my users listed. Wouldn't it be nice to have a Users folder in the separate "iweb domain" folder I created with all the users' names in there and in those folders all their website content would be stored? Sounds ideal but darned if I can figure out from the documentation how to do that. I thought it would be automatically set up when I set up the site but I guess not. The second problem, of course, is how to "hook" iWeb on the kids' laptops to point to that location on the server so that their site content can be uploaded. Wouldn't it be great to type something like "iWeb.domain.com/~username" and go right to the site? Wouldn't it be EVEN BETTER to type "username.domain.com" and go right to their site? Look...I'm not opposed to reading how to do this if the material is reasonably intelligible. Of course being a one person IT shop that's stretched to the gills, the only SPARE time I have to read is at home. It doesn't seem to me like this should be rocket science, but it sure looks like it is. Is this something I can tackle in a reasonably short period of time or just tell the kids it can't be done? Thanks for any help