Web Development Environment Setup

I have been looking around the web and forums for a while for the best way to set up a development office. I havent really found many specifics.

I am with a new company is just starting to really take their development services seriously. We've added a couple developers and designers in the last month. I am trying to figure out a the best way to set up our environment.

We have a couple dedicated virtual servers with Media Temple. Currently, we develop everything under a subdomain of a domain we set up for development. When the site is ready to go live we move the site to its own domain. I cant believe this is the best way to go about things. So, what do you guys suggest as a setup? Software, versioning, etc. We have the ability to setup a test server in house and then push out changes to the production server but not really sure if that is needed.

We do mainly Wordpress development.

Any advice, links to articles, etc is appreciated.

If this should be posted in another area, please let me know.

Thanks