VirtualHosts in new Drupal installation

I don't know if I misunderstood but if you are trying to use 3 diffrent local sites like localhost, local2, local3 keep reading.
I recommend to use a 3rd party application to handle those sites. I use rapache and after a simple patch its the best way to handle apache on ubuntu. If you don't want to use such tool you have to create sites by hand. First of all you need to create a file with name "drupaldevelopment" (you can use any name) at "/etc/apache2/sites-available"
File content will be

<VirtualHost *:80>

ServerName drupaldevelopment
DocumentRoot /home/yourusername/yourserverdirectory
ServerAlias sitename1 sitename2 sitename3
LogLevel debug
ServerSignature off
<Directory />
		Options FollowSymLinks
		AllowOverride All
</Directory>
<Directory /home/yourusername/yourserverdirectory>
		Options Indexes FollowSymLinks MultiViews
		AllowOverride All
		Order allow,deny
		allow from all
</Directory>
</VirtualHost>

I would recommend to chose a directory on your user directory so you wont deal with permission problems in future.
Note that aliases for your sites are sitename1 sitename2 sitename3 you can use anything.
next you will enable that site by creating a link to previous file. So your site will be enabled
By the way this is not necessary but I recommend you to enable mod_rewrite to be able to use clean urls. It does not activated at default installation. to do that run "sudo a2enmod" and restart apache.

Now you have done everything with apache next is to extract drupal files to "/home/yourusername/yourserverdirectory" than copy create directories named as sitename1 sitename2 sitename3 under sites folder files at that folder will be exactly same as "default".

So whenever you call sitename1 drupal will look for settings.php file at sitename1 if such file and folder does not exist it will use default folder.