Tips : Multiple Site Drupal - Hosting Multiple Domains from a Common Codebase

How to Implement Drupal Multi-site

1. Point all your domains to the same root folder where Drupal is configured (You admin or hosting provider will point domains as needed)
2. In the sites folder is a sub-folder called default which contains a file names settings.php [../sites/default/settings.php]
3. Create a new folder within the ../sites/ folder bearing the exact name of the domain name you would like to handle (complete with/without the www depending on your preference) and save a copy of the original settings/php file int his folder [../sites/www.domain1.com/settings.php]
4. Perform the above step for all the domain names that you would like to handle as well as their versions without www (e.g www.domain.com and domain.com should each have a seperate configuration folder)
5. If you are planning to continue mirroring the domains to serve the same Drupal content, you donto need to do anything beyound this point. The identical settings will point all content requests from all the mirrored domains to be returned through the primary URL that you would like your site to be indexed and known by.
6. If you would like to serve different content for each/some URLs, within each settings.php file for a domain that you would like to point elsewhere:
7. Modify the database configuration and $base_url settings to reflect the location of the Drupal Database for each of the domains i.e

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Courtesy : http://www.cmsproducer.com