I now have shareyourmusic.com and worldbeatplanet sharing a single Drupal installation with separate databases. The way it’s done is very simple & elegant: have a separate conf.php file (named shareyourmusic.com or worldbeatplanet.com) for each domain.
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Could you clarify this post please? I've located my conf.php file but I don't understand exactly what else you've done. I'm assuming you're using the same server for both domains. Where are you putting the additional conf file?
It's documented at http://drupal.org/book/view/274
Both files go in /include but are named differently. I have two virtual domains pointing to the same host & the same directory. One configuration file is called shareyourmusic.com.php and the other is called worldbeatplanet.com.php. Depending on the domain name someone uses to access the site, one of those files will be used. If you also have one named conf.php, it will be used by default if there's none matching the domain name.