Thanks so much for all of your help. I am sooo close to having a functional server!
My last little bug is this:
My sites are located at ~/sites/example.com on my server.
When I enter /sites/example.com in Virtual Host Root it tells me the path is not created, please create it manually.
On my server I can cd to ~/sites/example.com. It's absolutely there. I don't get it. Any ideas?