problem with vhosts

[Thomas]

What do you mean by "it goes to domain1.com"? Do you get redirected?
Are you sure about your DNS setup? Did you configure properly your
mongrel servers?

Before proxying to mongrel, simply create 2 dummy static website with
a simple hello page, like "hello this is domain1" and "hello this is
domain2".

Also I see that you use, user root and group root, I am not sure that
is very safe to do so.