Configuring subdomain on Apache2 Ubuntu

Im trying to install cakephp on my box.
While i can always try to expand the whole cakephp folder into /var/www but I want separate the folder which can be accessed using different name.

http://localhost/cakephp seems like giving the weird looking index.php so i decide to use http://cake.localhost to see if I can make the page look normal.

here is the step I took

$cd /etc/apache2/site-availables
$ sudo gedit ./cakephp

add the following
<VirtualHost *:80>
    DocumentRoot /var/www/cakephp/
    ServerName cake.localhost
</VirtualHost>

$sudo gedit /etc/hosts
add this line
127.0.0.1             cake.localhost

$cd /etc/apache2/site-enabled
$sudo ln -s ../site-available/cakephp ./cakephp

restart the apache server
$/etc/init.d/apache2 restart

note: if you see the warning message like "unable to resolve servername"
add this
$echo "serverName localhost" >> /etc/apache2/httpd.conf


Dont exactly know what happened on everything, since it work and Im happy with it