How would you set up a python web server with multiple vhosts?
I'd recommend Nginx for the web server. Fast and easy to set up. 
You'd probably want to have one unix user per vhost - so every home directory holds its own application, python environment and server configuration. This allows you to restart a particular app safely, simply by killing worker processes that your vhost owns. 
Just a tip, hope it helps.
I've been told wsgi is the way to go and not mod_python. But more specifically, how would you set up your multi website server environment? Choice of web server, etc?