developing multiple sites locally with apache server on linux

developing multiple sites locally with apache server on linux

I am finally moving over fully to GNU/Linux only environment for web
development. Love it. I am using ubuntu linux. I have lamp installed using
tasksel and have change the /www to /home/www/htdocs.
1) is this a problem? that the last folder containing html/php files is
not called www?
2) Does the server only look for index files when i try to access the data
through the a browser by typing localhost?
3) I have placed all my development folders which contain many sites into
htdocs (where i have made apache look by editing sites available), with my
intentions being to keep all the data there so i can develop and quickly
test the code in the browser by setting up bookmarks linking to different
folders in the local host directory.
b) i cant not access anything past the primary directory, which is
localhost (htdocs) when i type localhost/harmony it does not pick up the
index file even if i point to it. it displays the message "You don't have
permission to access /harmony/index.html on this server"
4) am i going about this the right way? in windows using dreamweaver i
would work on a php file then just click upload (or f12 to view browser,
and it would save the file and upload it and open it in the browser, nice
;) but im not that lazy! will sacrifice the lazy society for stability
security etc (long long list).
Tried google but keyword picking up wrong topics.