by Howard Miller.
I think Moodle Instance Management is probably for if you are crazy
Yes - just create a separate installation and get bust with virtual hosts.
I have a setup like this...
/var/www/www.domain1.com/...
/var/www/www.domain2.com/...
/var/moodledata/www.domain1.com/...
/var/moodledata/www.domain2.com/..
Then two databases and appropriate vhosts defined in Apache. As long as you can work Apache, it's simple.