Creating users in MacOS X Server for virtual hosting?

Wasn't sure if this belonged here or in the Apache section. Anyhow, I just got an xServe (MacOS X Server 10.3.4) to replace an aging x86 running RH 7.3. On my old box, I created users for each virtual host site in Apache so that when a user logged in, (ssh, ftp, etc), they got dumped into their home folder, which was also the default document root for the corresponding virtual hosts in Apache. This seemed to make sense and kept everything neatly organized. It would seem that OS X Server discourages this by specifying in their literature to create virtual hosts in Apache default document root (/Library/WebServer/Document) and stating that if you create sites to be served from a users home folder (/Users/username/Sites) that you access that users site with the following url - http://www.yourdomain.com/~username. Obviously, I'd like to avoid that. Anyhow, I suppose I could still go in and specify the Users home folder in the virtual host container in httpd.conf thus avoiding the unorthodox domain names, but thought I'd ask which would be the more correct way of setting up users/virtual hosts and why?

Thanks.